Skyline Champion Corp. Stock Deal in Transaction
Triad Financial Services, a subsidiary of ECN Capital Corp., a leader in financing solutions to manufactured housing dealers across the U.S., has announced a letter of intent for $1.14 billion in financing from Blackstone’s Asset-Based Finance Group.
The capital will be used to originate high-grade consumer loans that will be serviced by Triad.
“Triad provides critical financing solutions that help prospective homeowners meet their family’s needs,” said Steve Hudson, CEO of ECN. “We look forward to continuing to innovate with our dealers and provide affordable housing to more Americans. We anticipate this new capital will accelerate growth.”
Rob Camacho is the senior managing director and co-head of ABF Group.
“We are pleased to expand our relationship with Triad, providing capital to help more families access affordable housing and an attractive opportunity for our investors,” Camacho said.
The Blackstone ABF capital will enable the origination of new, high-grade consumer loans and aligns with the company’s goals.
Part of the deal involves Skyline Champion’s agreement with ECN to purchase shares valued at $138 million.
ECN Capital and Skyline Champion will form a captive finance company that will be 51 percent owned by Skyline Champion and 49 percent owned by Triad Financial. The captive finance company will provide a tailored retail finance loan program for customers and a new branded floorplan offering for Skyline Champion and its affiliates in the manufactured home finance space and will operate with services provided by Triad.
The captive finance company is expected to enable both companies to work more closely together to grow their respective businesses and create value for their stakeholders. Among other things, the captive finance company is expected to:
- Drive greater demand for product by providing broader and more attractive financing options and services for Skyline Champion’s customers
- Enhance Skyline Champion’s turn-key homebuying solutions while magnifying the benefits of their digital and direct-to-consumer strategic investments; and
- Generate increased retail loan originations and floorplan balances, driving growth and scale efficiencies for Triad
“We are excited to announce this new strategic collaboration with one of our long-standing business partners,” Skyline Champion President and Chief Executive Officer Mark Yost said. “The partnership with Triad will help streamline the homebuying experience for our channel partners as well as the consumers of our homes.
“This will allow us to expand our ability to offer affordable housing solutions more efficiently while driving company-wide growth. The asset-light model of these financing solutions combined with the strength of our balance sheet allow us to partner with ECN Capital while continuing our investments in our longer-term commercial and operational initiatives. We are excited about the future and the benefits this investment will bring to both companies’ stakeholders.”
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