CARMEL Ind. -

Obviously, operators need financial resources to run their dealerships. Capital providers do, too.

And NextGear Capital announced on Thursday that it has more resources to help independent and buy-here, pay-here dealerships.

The Cox Automotive division said it completed the renewal of its $1.1 billion financing facility on Aug. 31. In addition, NextGear mentioned it recently closed its latest $500 million bond offering from July.

Executives highlighted that NextGear’s renewed $1.1 billion line of credit with banks can provide a variable funding mechanism to support the seasonal and growth needs of its dealer clients.

Company leaders pointed out that the bond offering is NextGearl’s 13th asset-backed security (ABS) issuance since its initial offering in 2014.

“These recent transactions preserve our operating flexibility while allowing us to continue serving the floor plan financing needs of independent dealers,” NextGear chief financial officer Dave Horan said in a news release.

“Our 20,000-plus dealer clients can gain greater confidence that their lender is well established in the capital markets and has a reliable source of capital to fund their inventory needs today and in the future,” Horan continued.

This $500 million bond offering was the first for NextGear since March 2020 and represents the first floor plan ABS transaction issued so far this year.

According to the news release, MUFG Securities Americas served as administrative agent on the bank conduit facility, and RBC Capital Markets was the lead structuring agent and underwriter for the securitized term note offering.