NEW YORK, April 17, 2024 /PRNewswire/ -- Sotheby's
Financial Services, Inc. ("Sotheby's Financial"), the world's
leading full–service art financing company, announced today the
launch of a first-of-its kind securitization program. The inaugural
issuance, which priced yesterday, consists of $700 million of asset-backed notes (the "Notes")
backed by art secured loans. Morningstar DBRS is expected to rate
the four classes of Notes at closing with the senior-most class
expected to receive the highly coveted AAA (sf) rating.
"We are thrilled to achieve another milestone with the launch of a
landmark securitization program" said Ron Elimelekh, Co-Head,
Chief Operating Officer, and Chief Capital Officer, Sotheby's
Financial. "This highly successful transaction, which saw
strong demand from institutional investors resulting in a
significant upsize to the transaction, will help further our
mission of unlocking the power of our clients' collections through
the delivery of innovative financial solutions. Now with over
$2 billion of funding capacity,
Sotheby's Financial has a flexible and committed funding framework
supported by an existing credit facility and this groundbreaking
securitization program."
Over the last two and half years, under the leadership of Mr.
Elimelekh and Scott Milleisen,
Co-Head and Global Head of Lending, and their dedication to
delivering the highest standard of client experience, Sotheby's
Financial has seen significant portfolio growth, ending 2023 with
nearly 100% growth over a two-year period and its highest ever
portfolio balance. By leveraging its unparalleled expertise in art
and luxury, and on the strength of a best-in-class lending
ecosystem, Sotheby's Financial is creating the world's leading
finance company for fine art, cars, collectibles, and luxury
goods.
Scott Milleisen added: "Our clients
rely on Sotheby's Financial to provide dependable lending
solutions, and today's news only furthers our commitment to
enhancing our offerings to clients. Thanks to our continued access
to capital markets, we are the only lender in the marketplace who
can consistently offer loans of up to $250
million underwritten based on the value of one's
collection."
Sotheby's Financial has originated over $10
billion of loans since inception. Following a renewed
strategic focus and investment in Sotheby's Financial, the majority
of lending activity has occurred within the last few years.
Jean-Luc Berrebi, Sotheby's Chief
Financial Officer, added: "This transformational moment for
Sotheby's Financial Services is another step forward in our journey
to innovate and lead the market in all aspects of our business,
giving us significant advantage as a leader for art & luxury
lending. With expanded access to capital, we can now significantly
increase the scale of SFS to enhance the exceptional client
experience that is central to Sotheby's."
The securitization transaction is scheduled to close on
April 23, 2024, subject to customary
closing conditions.
This press release is not an offer to sell, nor a solicitation of
an offer to buy, any securities, nor shall there be any sale of
these securities in any state or jurisdiction in which the offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state or
jurisdiction.
SOTHEBY'S COMMUNICATIONS TEAM
KARINA SOKOLOVSKY |
KARINA.SOKOLOVSKY@SOTHEBYS.COM
DEREK PARSONS |
DEREK.PARSONS@SOTHEBYS.COM
About Sotheby's Financial Services
Sotheby's Financial is the world's leading full–service art
financing company. Sotheby's Financial enables clients worldwide to
unlock liquidity in fine art, luxury items, and other collectibles
through financing solutions and innovation. Sotheby's Financial is
vertically integrated with Sotheby's, one of the world's largest
and most-trusted marketplaces for world-class works of art and rare
objects. Sotheby's has been uniting collectors with
world-class works of art and luxury items since 1744. Sotheby's
empowers an international community of collectors and connoisseurs
to discover, acquire, and consign fine art and rare objects.
https://www.sothebys.com/en/about/services/sothebys-financial-services
About Sotheby's
Established in 1744, Sotheby's is the world's premier
destination for art and luxury. Sotheby's promotes access to and
ownership of exceptional art and luxury objects through auctions
and buy-now channels including private sales, e-commerce and
retail. Our trusted global marketplace is supported by an
industry-leading technology platform and a network of specialists
spanning 40 countries and 70 categories which include Contemporary
Art, Modern and Impressionist Art, Old Masters, Chinese Works of
Art, Jewelry, Watches, Wine and Spirits, and Design, as well as
collectible cars and real estate. Sotheby's believes in the
transformative power of art and culture and is committed to making
our industries more inclusive, sustainable and collaborative.
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