Kroll Bond Rating Agency assigned preliminary ratings to four classes of Series 2023-1 notes (CPC 2023-1) issued by CPC Asset Securitization II, which will issue four classes of Series 2023-1 notes totaling $85 million.
The proceeds of the sale of the Series 2023-1 notes will be used to purchase receivables, fund the reserve account and pay related fees and expenses. The notes are “expandable” term notes such that at any time during the revolving period, the issuer may periodically issue additional notes up to a maximum amount of $500 million as long as certain conditions are met, including receipt of rating agency confirmation.
CPC 2023-1 represents Channel Partners Capital’s third small business ABS securitization. CPC 2023-1 is collateralized by small business loans and business advance agreements (collectively the receivables) across a set of industries, including services, transportation, manufacturing and retail industries. The business loans have a fixed rate, fixed payment amount and original term as well as an initial amount and repayment amount. The business advances do not have a fixed term or payment amount but have an initial purchase price and purchased amount. The company sources new business loans and business advances through a network of relationships with equipment finance companies at the point of sale to equipment finance company customers.
