Channel, a provider of equipment financing and working capital solutions, announced the closing of its sixth securitization and fourth working capital securitization; a $125 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. The completion of the transaction has strengthened existing investor connections and attracted seven new investors. The success of this securitization reaffirms investor confidence in Channel, solidifying its position as a trusted and reliable market investment.

”Channel is a clear leader in small business lending, committed to both Partners and borrowers," said Mike McConnell, Vice President of Treasury & Capital Markets. "The market acceptance and efficient pricing reflects the strong support and confidence our investors have in us."

This securitization highlights Channel’s strong investor sponsorship amid the market challenges of 2024. Despite the high volume of ABS year-to-date, Channel accessed a favorable window to complete this transaction, simultaneously redeeming two existing working capital ABS transactions ahead of the conclusion of their revolving period. This accomplishment marks Channel’s fourth consecutive year of successfully accessing the ABS market, highlighting Channel’s continued sustained dedication to the marketplace. Notably, Channel achieved a 100 percent advance rate through Class D notes, distinguishing this as the only working capital ABS transaction this year to accomplish such a feat.

"We are immensely proud of our team's continued success in identifying and originating high-quality working capital assets at attractive pricing," said Eli Sethre, Chief Financial Officer at Channel. "This accomplishment reflects not only our collective expertise but also showcases our track record of consistent and predictable balance sheet credit performance."

This achievement represents a pivotal moment for Channel, further solidifying its leadership in the industry. Moving forward, Channel remains determined to provide outstanding value to its investors and Partners while driving continued growth and market presence.