National Funding, one of the largest U.S. specialty finance companies serving small- and medium-sized businesses, closed its first asset-backed securitization (ABS) for $120 million. Guggenheim Securities served as sole structuring advisor and sole initial purchaser of the notes.

The facility has a three-year revolving period, a five-year legal final and is expandable to $500 million. The notes priced at a blended yield of 4.58 percent per annum and provided for a 95 percent advance rate. National Funding served as risk retention sponsor. The notes were issued from a wholly owned subsidiary of National Funding, NFAS, LLC, and consist of three classes. The most senior class of the three-tranche transaction earned an A(sf) rating from Kroll Bond Rating Agency (KBRA). The notes are secured by a revolving pool of short-term business loans.

To date, National Funding and its subsidiary, Quick Bridge Funding, have provided more than $3.5 billion in working capital and equipment leasing for more than 60,000 small- to medium-sized businesses nationwide.

“This $120 million securitization positions National Funding for continued exponential growth as the economy evolves and technology drives business,” said CEO and founder David Gilbert. “At National Funding we believe in American small business owners. As one of the first alternative lenders in the marketplace with more than two decades of experience, we are committed to creating customized small business lending options, new loan products, and resources to help foster the financial well-being of small businesses.”