GE Capital says it has bought more than NZ$100 million of commercial loans from South Canterbury Finance (SCF) subsidiary and specialist plant and equipment lender Face Finance.
GE said its New Zealand equipment finance business had bought the loans from SCF's receiver McGrathNicol. No price for the deal was disclosed because the receiver says it's confidential.
Face Finance specialises in "big ticket" plant and equipment finance for the road transport, aviation, earth moving and construction sectors from operations in Auckland and Christchurch. It had total loans net of impairment provisions worth NZ$196.9 million at the time of SCF's receivership on August 31 last year. Face Finance was fully funded by SCF.
The latest Face Finance receiver's report, covering the six months to February 28, shows a total of NZ$62.2 million worth of loan book repayments were received in the period. It also shows that Face repaid a NZ$50 million intercompany loan and lent NZ$12 million in the six months following SCF's receivership. Meanwhile, Companies Office records show Face Finance's name changing to ECAF Limited from today. See more backgroud on Face Finance here.
“This transaction builds on our history in New Zealand and will continue the strong growth our business has experienced over the past few years," said Mitchel Booth, GE Capital's New Zealand general manager for equipment finance.
“The acquisition of these assets will expand our customer base as we continue to provide dedicated financing solutions for the heavy equipment needs of the construction, transport, forestry and aviation industries. “
Booth added that Face Finance customers would get better access to capital through GE's "competitive financing.”
(Update adds detail from new Face Finance receiver's report).