South Street Securities Funding LLC Closes $87.5 Million of 6.25% Fixed Rate Senior Notes Due 2026

South Street Securities Funding, LLC (SSSF), is pleased to announce the firm has completed a private placement of approximately $90 million of five-year senior unsecured notes.

The offering was lead-managed by Piper Sandler & Co. (Piper Sandler) and co-managed by AmeriVet Securities, Inc. (AmeriVet). SSSF received an investment grade BBB- issuer rating by Kroll Bond Rating Agency with stable outlook. SSSF is a wholly owned subsidiary of South Street Securities Holdings, Inc. (SSSHI), a diversified financial institution specializing in fixed income repo, mortgage finance and equity finance solutions.

“We are delighted to complete this capital raise with the help of Piper Sandler and AmeriVet, and that it is supported by the Kroll rating,” said James Tabacchi, President and Chief Executive Officer of SSSHI. “This allows us to increase our capital base and bolster various growing businesses, particularly TBA mortgage hedging and equity finance. Market conditions in the near future appear to be favorable to utilize this fresh capital in value accretive business expansions. Additionally, we are considering investments in FinTech to grow our technology footprint.”

SSSHI owns technology infrastructure via wholly owned subsidiary Matrix Applications. The proceeds of the notes will be used to refinance existing debt and provide expansion capital to SSSF’s broker-dealer subsidiary, which carries a BBB rating from Kroll with stable outlook.

“Over the last few years, our company has transitioned from net interest margin dependency as a repo dealer to a broader business mix of fee and commission-based revenues,” said Karsten Berlage, Chief Financial Officer of SSSHI. “A solid capital base allows us to address increasing margin requirements by clearing houses and maintain a strong balance sheet.”

Regarding the private placement, Mr. Berlage said, “We are proud of the strong investor interest in our inaugural note offering. We look forward to fostering new relationships with a broad investor base of insurance companies, community banks, hedge funds, REITs and other institutional investors who have participated in the note offering.”

Bryan Cave Leighton Paisner LLP represented SSSF as issuer’s counsel. Seward & Kissel LLP was investor’s counsel.

The notes have not been and will not be registered under the Securities Act of 1933, amended, or any state securities laws and may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, registration requirements of the Securities Act and applicable state securities laws.

This press release is for informational purposes only and does not constitute an offer to sell nor the solicitation of an offer to buy the notes or any other securities and does not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful.

Forward-Looking Statements
This press release includes “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Exchange Act, including but not limited to statements about the anticipated use of net proceeds from the offering and other matters. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the control of SSSF or SSSHI. SSSF and SSSHI caution you that the forward-looking statements presented in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this Report. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and neither SSSF nor SSSHI undertakes any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About South Street Securities Funding, LLC.
SSSF is a wholly owned subsidiary of South Street Securities Holdings, Inc. (SSSHI), a diversified financial institution specializing in fixed income repo, mortgage finance, and equity finance solutions.

About South Street Securities Holdings, Inc.
South Street Securities Holdings, Inc. is a leading independent provider of specialized financing, capital markets services and capital markets technology solutions to institutional asset managers (including traditional and hedge fund managers), real estate investment trusts ("REITs"), tri party investors, mortgage lenders, midsize and middle market securities broker-dealers, and corporate and government issuers. South Street Securities Holdings, Inc. operates from its New York, NY headquarters and branch offices in North Carolina, Arkansas and the United Kingdom.

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https://www.southstreetsecurities.com/