AUSTIN, Texas, Dec. 2, 2013 (GLOBE NEWSWIRE) -- In a significant step outside their usual corporate finance strategy, AMERCO (Nasdaq:UHAL), parent company of U-Haul, worked with twenty-three community financial institutions to fund $100 million in U-Haul corporate debt.
BancAssets, LLC, announces that it has closed the $100 million loan across a network of twenty-three community financial institutions, spanning from East Coast to West Coast, to meet part of U-Haul's corporate debt needs. BancAssets partnered with MidFirst Bank on this transaction, one of the largest privately-owned banks in the United States. MidFirst Bank served as the Lead Bank and Agent on this loan. The deal, which closed on October 8, 2013, represents a new channel for community financial institutions to participate in large and middle-market corporate financing deals, a market normally dominated by the world's biggest banks.
"U-Haul has long supported the cities and communities that support them and securing funding through community financial institutions is another way to continue that 68-year tradition," says U-Haul Treasurer, Gary Horton. "This transaction allowed us the opportunity to partner with new lenders that we may not have been exposed to previously, thus helping to contribute to the revenue that community financial institutions need to serve their communities."
BancAssets identifies, structures, arranges, and administers loans for large and middle-market corporate clients in partnership with community financial institutions. "We're successfully bringing Main Street to Wall Street, offering community institutions opportunities they may not typically have access to on their own," says David W. Hill, CEO of BancAssets and veteran banking and corporate finance executive. "What's more, loan opportunities like these enable our partner institutions to boost loan growth which is increasingly important to earnings."
"Community financial institutions need to build quality loans and financial returns in the ever-changing global marketplace. Encouraging corporate America to use the communities they serve to finance their business is our calling. We look forward to expanding this model in the marketplace," says Hill.
Don Shafer, Chairman at BancVue and BancAssets, shares Hill's enthusiasm for this deal and its broader implications. "Our country's economy has roared for more than a century, and one big reason is the fact we have a network across this country of more than 14,000 community financial institutions - unlike any other financial system on the planet. People in towns of every size in every state across our nation have access to capital from local institutions that are willing to make loans to businesses of every kind, which is precisely why Fortune 1000 companies should follow U-Haul's lead and support these institutions."
Tieman H. "Skipper" Dippel, Chairman of Brenham National Bank, one of the community banks that took part in the deal, captured the uniqueness of the situation. "What impressed us with the U-Haul opportunity was not just the strength of the credit, but also how BancAssets designed the process for the current needs of community institutions."
"With BancAssets, community financial institutions can share credit risk, access larger deals and augment their existing blended asset strategy, all while providing corporations access to a new source of reliable capital," continues Hill. "This is exciting news for community institutions and large companies alike."
About BancAssets
BancAssets, LLC offers corporate, commercial, and consumer loan programs, administration, servicing, and due diligence support through an established national network of community financial institutions that provides the opportunity to participate in large and middle-market corporate financing deals, normally dominated by the biggest banks. BancAssets is a majority owned interest of BancVue, the leading provider of innovative products, world-class marketing, and data-driven consulting solutions to community financial institutions across the U.S. Featuring offerings like Kasasa®, a national brand of superior products and marketing scale, BancVue products are designed to deliver controlled new account growth, higher profitability, and increased customer retention. Today serving nearly 700 community financial institutions across the country, BancVue is empowering its clients to compete in and win the war against megabanks.
For more information on BancAssets, please visit www.bancassets.com.