Latest news with #assetbackedsecuritization
Finextra
2 days ago
- Business
- Finextra
BNPL outfit Sunbit closes $200m ABS transaction
Sunbit, the company building financial technology for real life, today announced the successful completion of its inaugural asset-backed securitization (ABS), a $200 million notes offering that achieved a AA rating for the senior tranche and priced at an all-in fixed yield of 5.713%. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The transaction was led by Citi (Sole Structuring Agent and Joint Lead Bookrunner), with J.P. Morgan and ATLAS SP Partners as Joint Lead Bookrunners, and represents a significant milestone that positions Sunbit among a select group of leading fintechs successfully executing capital market transactions – signaling market confidence and momentum behind the company's positive growth trajectory. Strategic Timing Reflects Disciplined Approach to Capital Markets The securitization affirms Sunbit's financial, operational, and strategic strength. With profitable operating income for the last three quarters, revenue growth of 35% year-over-year, and over $1 billion in existing warehouse funding capacity, Sunbit strategically chose this moment to access the ABS market. The new ABS transaction also accommodates Sunbit's future funding needs with a 2-year revolver feature. "This securitization is the right transaction at the right time," said Arad Levertov, CEO of Sunbit and recent Ernst & Young Entrepreneur of the Year winner for Greater Los Angeles. "We are profitable and well-positioned for growth with many new investments and initiatives accelerating revenue. The ABS deal provides Sunbit with access to a massive new institutional investor base at attractive fixed rates, and adds significant funding capacity to our existing 4.5 million transaction portfolio, supporting our accelerating expansion.' Key financial highlights include: • Positive Operating Income for three consecutive quarters with positive net cash flow generation • 35% year-over-year revenue growth demonstrating significant and consistent business expansion • Over $1 billion in total warehouse funding capacity from premier institutional partners including Citi, J.P. Morgan, and ATLAS SP Partners • 100% quarter-over-quarter gross merchandise volume increase with Stripe POS financing partnership, and expected 80% year-over-year co-branded credit card receivables growth The securitization adds an additional $400 million in annual funding capacity alongside Sunbit's existing warehouse facilities, bringing total funding capacity to well over $1.5 billion. The transaction attracted more than 25 blue-chip institutional investors, including insurance companies, premier asset management firms, and hedge funds, significantly expanding Sunbit's institutional investor base. Capabilities Drive Market Confidence Sunbit was an early adopter of AI throughout its operations. Its pioneering technology drives superior customer experiences through high approval rates, transaction speed, and a customer-first infrastructure. The successful completion of this securitization required the same level of financial transparency, accounting rigor, and operational controls expected of public companies. Independent rating agencies conducted comprehensive due diligence on Sunbit's credit performance, operational processes, and financial reporting, validating the company's readiness for institutional capital markets. This achievement comes on the heels of significant industry recognition for Sunbit, including recent awards from Inc., Ernst & Young, Forbes, Deloitte, the Los Angeles Business Journal, and the Association of Dental Support Organizations.
Yahoo
3 days ago
- Business
- Yahoo
KBRA Assigns Preliminary Ratings to Aqua Finance Issuer Trust 2025-B
NEW YORK, August 05, 2025--(BUSINESS WIRE)--KBRA assigns preliminary ratings to four classes of notes issued by Aqua Finance Issuer Trust 2025-B ("Aqua 2025-B"), an asset-backed securitization collateralized by marine and recreational vehicle contracts as well as home improvement contracts. Aqua 2025-B will issue four classes of notes totaling $368.61 million, collateralized by $404.2 million receivables. Aqua 2025-B has initial credit enhancement levels ranging from 44.10% for the Class A notes to 9.30% for the Class D notes. Credit enhancement is comprised of overcollateralization, subordination of junior note classes (except for the Class D notes), a cash reserve account, and excess spread. Aqua Finance, Inc. ("Aqua" or the "Company"), founded in 1985 and incorporated in January 1988, is a consumer finance company operating in all 50 states. On July 29, 2022, Athene Holding Ltd ("Athene"), a retirement services company acquired a controlling stake in Aqua. Prior to Athene's acquisition, the Company was majority owned and controlled by a Blackstone managed fund. KBRA applied its Auto Loan ABS Global Rating Methodology, as well as its Consumer Loan ABS Global Rating Methodology, General Global Rating Methodology for Asset-Backed Securities, Global Structured Finance Counterparty Methodology and ESG Global Rating Methodology as part of its analysis of the portfolio pool data, underlying collateral pool and capital structure. KBRA considered its operational reviews of Aqua, as well as regular due diligence calls with Aqua. Operative agreements and legal opinions will be reviewed prior to closing. To access ratings and relevant documents, click here. Click here to view the report. Methodologies ABS: Auto Loan ABS Global Rating Methodology ABS: Consumer Loan ABS Global Rating Methodology ABS: General Global Rating Methodology for Asset Backed Securities Structured Finance: Global Structured Finance Counterparty Methodology ESG Global Rating Methodology Disclosures Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above. A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1010711 View source version on Contacts Analytical Contacts Jacob Paulose, Associate Director (Lead Analyst)+1 Maxim Berger, Senior Director+1 Stavros Cherpelis, Analyst+1 Melvin Zhou, Managing Director (Rating Committee Chair)+1 Business Development Contact Arielle Smelkinson, Senior Director+1 Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
