Channel, an independent provider of equipment financing and working capital solutions to small businesses nationwide, closed its seventh securitization and fifth working capital securitization; an $85 million issuance of asset-backed notes, secured by a diverse portfolio of small business loans and advances spanning multiple industries.
Kroll Bond Rating Agency (KBRA) rated all four classes of notes: AA (sf), A (sf), BBB (sf), and BB (sf). Truist Securities served as the structuring agent and joint book-running manager, and Guggenheim Securities served as a joint book-running manager.
“We’re excited to see continued strong market support, through the positive response and efficient pricing of this latest issuance, a clear sign of sustained confidence in our platform following the acquisition by Onset Financial,” Eli Sethre, chief financial officer at Channel, said. “It not only highlights our collective expertise but also showcases our track record of consistent and predictable balance sheet credit performance.”
“Having a front row seat to Channel’s capital markets team in action has been nothing short of impressive,” Justin Nielsen, founder and CEO of Onset Financial, said. “Their depth of expertise, strength of relationships and the way they show up in the market speaks volumes. It’s clear this team operates at an extremely high level, and I’m excited to lend our support and see what we will accomplish together as we further combine forces.”
“Every time this team engages the ABS market, they elevate the standard, refine structures, deepen relationships and never settle for good enough,” Brad Peterson, co-founder and CEO of Channel, said. “Their continued execution will add rocket fuel to Channel moving forward, particularly given our recent acquisition by Onset Financial, and the support that will add to future opportunities as well.”
