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Exeter files for New York IPO
Posted on Wednesday, 09 January 2019 14:42
Exeter Finance, a Blackstone-controlled sub-prime lender, has filed registration documents with the US Securities and Exchange Commission to launch its planned initial public offering (IPO) on the New York Stock Exchange.

The prospectus is preliminary and therefore the number of shares and amount at which they will be sold has not yet been disclosed.

Exeter has issued a placeholder of USD 100.00 million to calculate registration fees; however, the final amount raised is often different.

News of the listing comes five months after Reuters cited people familiar with the matter as saying private equity group Blackstone was exploring a sale or stock market flotation of the company.

This deal was said to value the business at around USD 1.00 billion, the sources said at the time, adding the buyout firm is working with investment banks on the process, with three potential acquirors reportedly in the running.

It was not disclosed which companies were advising Blackstone in August; however, Exeter has named Citigroup and Wells Fargo Securities as joint underwriters for the IPO.

The unnamed suitors that Reuters said were interested in buying the company will now have the opportunity to acquire shares in the flotation.

It is not yet known when completion is expected, although Exeter has agreed to list under the ticker symbol XTF.

Blackstone, which acquired the business from Navigation Capital Partners for USD 227.00 million in 2011, is also expected to remain a controlling shareholder in the group, with more than 50.0 per cent of the voting power.

Founded in 2006, Exeter claims to be an industry-leading, full-service, technology and data-driven speciality funding company operating in the US-based automotive financing market.

At 30th September 2018, the company had USD 4.00 billion in managed portfolio of retail instalment contracts, USD 1.80 billion of which was purchased in the opening nine months of last year.

Net income during the first three quarters of 2018 totalled USD 57.38 million, up significantly from USD 12.15 million in the corresponding period of 2017.

Exeter had debt of more than USD 3.00 billion at 30th September 2018.

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