Home Small business financing Bankers Healthcare Group Closes Third ABS Transaction, Issues $ 400 Million Bonds | State

Bankers Healthcare Group Closes Third ABS Transaction, Issues $ 400 Million Bonds | State

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SYRACUSE, NY, September 28, 2021 / PRNewswire / – Bankers Healthcare Group (BHG), the leader in unsecured business and personal loans, and the creator of one of the country’s largest networks of community banking loans and products – issued $ 400 million in banknotes backed by high-quality commercial and consumer credit. This is BHG’s third ABS transaction to date and it is the largest transaction in BHG’s history, helping to strengthen its liquidity position and further diversify its funding sources.

Discover the interactive multi-channel press release here:

https://www.multivu.com/players/English/8833655-bhg-closes-third-abs-transaction-issues-400-million-in-notes/

Kroll Bond Rating Agency, LLC has issued a preliminary rating of “AAA (sf)” for the Class A Notes of BHG 2021-B. This is the first AAA rating assigned to a category of BHG securitized notes, and it demonstrates the quality of BHG’s lending products, the structure of the transaction and the company’s long history of performance.

Credit Suisse Securities (United States) LLC, was the sole structuring agent and bookrunner for the transaction, which closed on September 22, 2021. The solid execution of the placement enabled the transaction to be quoted at a weighted average coupon of 1.65% thanks to an advance rate of 93%, excluding the class E tranche retained.

“Our third ABS transaction exceeded expectations and was quickly met with significant demand from the largest and most influential investors. This step will continue to position BHG for continued growth and expansion, especially as we look to bring new financial products to market, said Al crawford, CEO and co-founder of Bankers Healthcare Group. “I am very satisfied with the participants who were involved and the awards we received for our quality offering. I continue to believe that we have the most prolific funding sources in the world.”

The transaction met strong demand from investors, receiving a total of 47 orders for more than $ 1.6 billion throughout the capital structure. All rating classes were oversubscribed at least 5.8 times compared to the size of the original offering despite a significant competitive bid in the structured products market during the investment window.

BHG’s first agreement in July 2020 represented the first non-SBA small business loan transaction to go to market since the start of the COVID-19 pandemic. The deal was likely the first term ABS transaction backed by a mix of commercial and consumer loans, as well as the first small business or consumer loan transaction to be rated “AA” by Kroll when it was listed. inaugural broadcast.1. BHG’s second transaction in May 2021 significantly increased its investor base by attracting 14 additional investors. Thanks to three asset-backed securities offerings, 41 unique institutional investors have now participated in BHG’s ABS department, including 16 new accounts added in the last transaction.

“We are delighted to continue our expansion into the ABS markets,” said Dan McSherry, Chief Financial Officer of Bankers Healthcare Group. “A diverse investor base across multiple channels will strengthen our strategic growth plan and increase loan offerings across many product lines. “

The exceptional deal price represents a significant reduction in the yield spread between trades and underscores the continued success of the Company’s ABS program. The exceptional result of the latest transaction illustrates BHG’s continued expansion into the ABS market as a programmatic issuer.

About Bankers Healthcare Group

BHG is transforming the financial sector; leveraging the power of data, analytics and cutting edge technology to become one of the top performing loan sources and the creator of one of the largest networks of community banking loans and products in the country.

Since 2001, BHG has been responsible for more than $ 9 billion in premium borrower lending solutions, which can be accessed by community and mid-sized banks through a state-of-the-art loan sales platform. Building on nearly two decades of innovation, BHG and its family of brands now offer a full range of financial solutions covering business, consumer and SBA 7 (a) loans, credit cards, collections, risk management services and points of sale. -sale financing with an emphasis on patient loans.

With record growth year on year, BHG continues to be recognized regionally and nationally: by earning a place on the Inc. 5,000 for 14 consecutive years and receiving Great Place to Work accolades® and Fortune magazine, among others. BHG is partly owned by Pinnacle Bank (PNFP) and is headquartered in Davie, Florida and Syracuse, New York.

To learn more about BHG’s financial solutions, visit www.bankershealthcaregroup.com, and for more information on the BHG Bank network, Click here. Follow BHG on LinkedIn, Facebook, and Twitter.

1 Source: Finsight.com. Includes transactions from 2008 to present categorized as “Consumer and Market Loans” and “Small Business Loans”

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SOURCE Bankers Healthcare Group



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