Channel Closes $163MM Equipment Finance Securitization

Channel completed its first equipment finance securitization, a $163 million issuance of asset-backed notes collateralized by a diverse portfolio of equipment receivables. This is the second securitization for Channel, which completed its first small business loan and business cash advance ABS transaction in December 2021.

The notes have three classes, rated A (sf), BBB (sf) and BB (sf) by Kroll Bond Rating Agency. Truist Securities served as structuring agent, lead manager and sole bookrunner, with Regions Securities as co-manager.

“Just under two years from originating our first equipment finance asset, we are excited to announce the successful closing of our first equipment finance securitization,” Eli Sethre, CFO at Channel, said. “It’s a testament to our team, strong partnerships and ability to leverage data and manage risk. This milestone represents a significant step forward as we continue to optimize and diversify our capital structure.”

“We are extremely proud of the hard work by our team to have successfully executed on two securitizations across business lines in equipment finance and working capital over the past seven months,” Brandon Nelson, vice president of finance at Channel, said. “It is gratifying to see such a positive response from ABS investors in both verticals.”

“Our entire team appreciates the marketplace acceptance of this second securitization offering and our first in the equipment finance space,” Brad Peterson, president and CEO at Channel, said. “Once again, we attribute the completion of this transaction to the success of our partnerships and the quality of business originated together. Both securitizations further demonstrate the power of our single source products and solutions and how we will continue to scale moving forward.”

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