Channel closes $85M ABS deal

Channel has completed an $85 million asset-backed securitization, marking its seventh overall and fifth tied to working capital, amid strong investor demand.

The issuance, backed by a diverse portfolio of small business loans and advances, received ratings of AA (sf) through BB (sf) from Kroll Bond Rating Agency, according to a July 16 Channel release. Truist Securities and Guggenheim Securities acted as joint book-running managers for the transaction, which included both new and existing investor participation and achieved a 100% advance rate through the Class D notes—the only working capital ABS deal to do so this year.

The securitization follows Channel’s acquisition by Onset Financial and reinforces investor confidence in the company’s disciplined execution and consistent credit performance, according to the release. Executives from both Channel and Onset highlighted the capital markets team’s expertise and strong market relationships, positioning the company for continued ABS market success and expanded growth opportunities.

This transaction represents the fifth consecutive year Channel has accessed the ABS market, with the deal also serving to redeem an existing working capital securitization.