Channel, a prominent equipment financing and working capital solutions provider, has successfully closed its sixth securitization and fourth Working Capital securitization, raising $125 million in asset-backed notes. Backed by a diverse portfolio of small business loans and advances, the transaction garnered strong investor interest, attracting seven new investors while solidifying relationships with existing ones.
This year's transaction marks Channel’s fourth consecutive successful year in the ABS market, emphasizing its ongoing commitment and stability in the sector.
Key points
Strong investor confidence: The successful closing of the securitization, even amidst challenging market conditions, underscores investor trust in Channel's business model and asset quality.
Market leadership: Channel’s consistent success in the ABS market solidifies its position as a leader in small business lending.
Expanded investor base: The addition of seven new investors to Channel’s investor base indicates a growing appetite for small business loan assets.
100% advance rate: Channel's achievement of a 100% advance rate through Class D notes is a significant accomplishment, setting it apart from other working capital ABS transactions this year.
Resilience in challenging market: Channel's ability to successfully complete the securitization despite market headwinds demonstrates its financial strength and adaptability.
Mike McConnell, Vice President of Treasury & Capital Markets at Channel, highlighted the transaction's reception in the market, saying, “The market acceptance and efficient pricing reflect the strong support and confidence our investors have in us.”
This transaction highlights Channel's commitment to providing innovative financing solutions to small businesses and its ability to attract capital to support its growth.
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