Channel completed a second equipment finance securitization, a $190 million issuance of asset-backed notes collateralized by a portfolio of equipment receivables. This is the fifth securitization for Channel, which completed its first small business loan and business cash advance ABS transaction in December 2021.
The notes of this latest securitization consist of four classes, rated AA (sf), A (sf), BBB (sf) and BB+ (sf) by Kroll Bond Rating Agency. Truist Securities served as structuring agent, lead manager and joint bookrunner for the securitization, while Wells Fargo Securities served as joint bookrunner and Regions Securities served as co-manager.
“This marks a significant milestone in our growth and the maturity of our equipment finance platform, reinforcing our commitment to provide exceptional financing solutions,” Eli Sethre, CFO at Channel, said. “We are incredibly pleased to have secured an AA rating on this transaction, our second equipment finance securitization since launching the product just over three years ago. This distinction underscores the trust and confidence investors place in our ability to deliver outstanding results and our pursuit to driving strength in this market.”
“Our latest securitization completion showcases our team’s exceptional expertise and dedication,” Mike McConnell, vice president of treasury and capital markets at Channel, said. “Attracting a mix of 13 existing and nine new investors on this transaction demonstrates our ability to broaden our investor base. With the inclusion of a pre-funding pool, we not only achieved a meaningful increase in the transaction size relative to our first equipment finance transaction but also secured an impressive advance rate of 87.35%. This success underscores the team’s relentless pursuit of excellence alongside growing investor confidence in Channel’s platform capabilities.”
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