14 December 2017
visit http://response.ncr.com

Kabbage prices $525m securitisation

08 March 2017  |  2621 views  |  0 Source: Kabbage

Kabbage, a pioneering financial services, technology and data platform, today announced that on March 7, 2017, it priced $525 million of fixed-rate, asset-backed notes in a private securitization transaction.

The facility is expandable to $1.5 billion. The notes will be issued in four classes by Kabbage Asset Securitization LLC, a newly formed, wholly owned subsidiary of Kabbage Inc. The senior class of notes is anticipated to be rated “A(sf)” on the closing date by Kroll Bond Rating Agency (KBRA). Guggenheim Securities is serving as sole structuring advisor and initial purchaser of the notes. The securitization is expected to close on or about March 20, 2017, and is subject to customary closing conditions.

The securitization was significantly oversubscribed with interest from top-tier institutional investors. This represents the largest asset-backed securitization of small business loans in the online lending industry, next to Kabbage’s prior, expandable, ABS note issuance in March 2014. This new facility will enable Kabbage to continue to broaden its product mix by offering larger credit lines and longer term loans.

“In a time when the FinTech industry has experienced challenges, our automated technology and data platform has demonstrated to investors Kabbage’s ability to deliver superior and predictable performance on small business loans as an asset class,” said Kevin Phillips, Head of Corporate Development for Kabbage. “Both the overwhelming investment interest and the anticipated strength of our bond rating are testaments to our proven approach to underwriting and managing small business loan performance through the Kabbage Platform.”

In March 2014, Kabbage was the first technology-enabled, financial services company to issue asset-backed notes secured by small business loans. This transaction was initially $270 million and was subsequently expanded to $545 million by the issuance of additional notes to multiple capital markets investors. This facility enabled Kabbage to dramatically scale its volume to extend over $2.7 billion through the platform.

The anticipated KBRA rating of “A(sf)” reflects an upgrade from the rating on Kabbage’s prior securitization. “Kabbage’s strong historical performance over the last three years played a key part in KBRA’s upgrade,” said Anthony Nocera, Managing Director at KBRA. “The upgrade is based on several structural improvements and the existence of more historical performance data relating to Kabbage’s collateral.” 

Comments: (0)

Comment on this story (membership required)

Related blogs

Create a blog about this story (membership required)
visit www.niceactimize.comvisit www.atos.netvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
10075 views comments | 16 tweets | 25 linkedin
satelliteRipple completes XRP Lockup
8798 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
8783 views comments | 17 tweets | 36 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7534 views comments | 20 tweets | 11 linkedin
Brits flock to digital-only banksBrits flock to digital-only banks
7162 views 11 comments | 11 tweets | 15 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job