Sotheby's Financial Services Announces Groundbreaking $700 Million Securitization

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."