StepStone Group Sponsors a USD 102.5 Million Direct Lending Offering on Mexico’s BIVA Stock Exchange

Rhea-AI Summary

StepStone Group (Nasdaq: STEP) announced the successful structuring of a USD 102.5 million public offering of securitized loans on Mexico’s BIVA stock exchange on February 18, 2022. The securities, priced at USD 105 each, are rated triple-A and offer a coupon of Libor + 2.25% paid semiannually. This represents Mexico's first securitization of loans to North American companies, with plans for additional offerings over the next 18 months. Proceeds will support a diversified portfolio of 80 to 100 senior secured loans primarily to medium-sized U.S. companies.

Positive

• Successfully structured USD 102.5 million securitized loan offering.
• First securitization of direct loans to North American companies in Mexico.
• Securities received a triple-A rating, indicating strong credit quality.
• Expected yield to maturity of over 5% in USD.
• Floating rate structure offers potential benefits if interest rates rise.

Negative

• None.

NEW YORK, March 08, 2022 (GLOBE NEWSWIRE) -- StepStone Group Inc. (Nasdaq: STEP), a global private markets investment firm, announced that on February 18, 2022, it completed the structuring of a USD 102.5 million public offering of a securitized portfolio of direct loans via Certificados Bursátiles Fiduciarios on Mexico’s BIVA stock exchange.

The securities (ticker: STEPCB 22D) were priced at USD 105 per certificate, have a maturity of 11 years, carry a coupon of Libor + 2.25% that will be paid semiannually each July and January, and were granted a triple-A rating by HR Ratings (HR AAA (E)).

The offering represents the first securitization in Mexico of a portfolio of direct loans granted to North American companies, and it is the first time that StepStone acted as sponsor and manager of a trust issuing a publicly listed rated note in any market. “StepStone is very excited to have designed and structured this innovative security with Mexican insurance companies in mind, as well as other institutional investors that wish to invest in US dollar-denominated securities,” said Luis Perezcano, a senior advisor to StepStone.

“The AAA rating translates to minimal capital requirements for Mexican insurance companies. An expected yield to maturity of more than 5% in US dollars makes this an attractive alternative for any investor seeking US dollar-denominated returns,” commented Alberto Basave, a managing director for StepStone. “The floating rate structure has the potential to provide additional benefits to investors if interest rates rise,” added Mr. Basave. The equivalent of 3.1 million Mexican pesos was raised in the first offering on February 18. Subsequent offerings will be conducted in the following 12 to 18 months until the total USD 102.5 million issue is completed. The proceeds will be invested through StepStone’s private debt platform, in partnership with some of the most sophisticated private debt managers in the world, to build a portfolio of 80 to 100 loans to medium-sized companies with operations mainly in the United States. Individual credits will be senior secured first-lien loans mostly to sponsored buyout transactions.

The portfolio will be diversified by sector, industry, region and company size among others, and will be subject to the following eligibility criteria: 2% max to a single issuer; 30% max to a single general partner; 30% max to any single sector; and 20% max to any single industry.

Grupo Nacional Provincial and other Mexican insurance companies participated as investors in the offering.

About StepStone

StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of December 31, 2021, StepStone oversaw approximately $548 billion of private markets allocations, including $127 billion of assets under management. StepStone's clients include some of the world's largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.

Contacts

Media:
Brian Ruby / Chris Gillick, ICR
StepStonePR@icrinc.com
1-203-682-8268

FAQ

What is the significance of StepStone Group's recent public offering?

StepStone Group's recent public offering of USD 102.5 million marks the first securitization of direct loans to North American companies in Mexico.

What are the details of the securities issued by StepStone Group?

The securities are priced at USD 105 each, have a maturity of 11 years, and carry a coupon of Libor + 2.25%, with triple-A ratings.

How much was raised in the first offering by StepStone Group?

The equivalent of 3.1 million Mexican pesos was raised in the first offering on February 18, 2022.

What will the proceeds from StepStone Group's offering be used for?

The proceeds will be invested through StepStone's private debt platform to build a diversified portfolio of 80 to 100 senior secured loans.

How does StepStone Group's offering benefit Mexican insurance companies?

The triple-A rating of the securities translates to minimal capital requirements for Mexican insurance companies, making it an attractive investment.