National Funding, a leading provider of innovative commercial financing solutions for small- and medium-sized businesses across the United States, announced the successful completion of its third securitization transaction, NFAS3 LLC Series 2025-1. This landmark deal underscores the company’s commitment to expanding access to capital for small businesses nationwide and reinforces its position as a key player in the fintech-driven financial ecosystem.
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The Series 2025-1 Notes, totaling $145 million, are structured into four (4) classes with ratings provided by Kroll Bond Rating Agency (KBRA) as follows: AA- for Class A, A- for Class B, BBB- for Class C, and BB for Class D. Guggenheim Securities, LLC served as sole structuring agent and sole book runner to National Funding in this transaction, which was oversubscribed by 1.7x and involved 13 unique investors including several first-time investors to National Funding’s ABS issuance program.
The Series 2025-1 Notes are secured by a revolving portfolio of receivables, primarily consisting of SMB loans issued to a diversified portfolio of small- and medium-sized enterprises nationwide. Demonstrating the company’s strategic approach to scalable growth, the transaction’s flexible structure includes an expandable feature that allows for periodic upsizes of up to $500 million, subject to the satisfaction of certain conditions.
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“Today’s securitization exemplifies our dedication to financial innovation and our ongoing effort to enhance liquidity and funding options for small businesses across the country,” said David Gilbert, CEO of National Funding. “This achievement not only affirms our financial strength but also reflects the confidence of the capital markets in our business model and risk management capabilities.”
The proceeds from this transaction will be used to retire the company’s Series 2022-1 notes, finance receivables, establish a reserve account, and cover related fees and expenses. During the revolving period, which extends to April 30, 2028, the company will continue to originate and transfer receivables, fostering continuous access to capital for customers. The structure includes credit enhancements such as overcollateralization, subordination, excess spread, and a reserve account, providing additional security for noteholders.
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This transaction marks a significant milestone for National Funding, advancing its mission to empower small business owners and entrepreneurs nationwide. With sound risk management, innovative technology, proven customer acquisition, and strategic capital management, the company is well-positioned for continued expansion and operational excellence.
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Source: PR newswire
