Channel Announces Successful Close of $190MM Securitization

Minnetonka, MN – November 17, 2023. Channel announces it has completed a second Equipment Finance securitization; a $190 million issuance of asset-backed notes collateralized by a diverse portfolio of Equipment Receivables. This is the fifth securitization for Channel having completed its first Small Business Loan and Business Cash Advance ABS transaction in December 2021.

The notes consist of four classes, rated AA (sf), A (sf), BBB (sf), and BB+ (sf) by the Kroll Bond Rating Agency. Truist Securities served as Structuring Agent, Lead Manager, and Joint Bookrunner, Wells Fargo Securities served as Joint Bookrunner, and Regions Securities served as Co-Manager.

Throughout 2023, Channel has continued to improve its platform, invest in its workforce, and support communities within which it operates, resulting in the ability to offer more efficient and tailored financing solutions for small businesses. This approach has allowed the organization to thrive, even in the face of market challenges and economic shifts.

"This marks a significant milestone in our growth and the maturity of our Equipment Finance platform, reinforcing our commitment to provide exceptional financing solutions,” said Eli Sethre, Chief Financial Officer at Channel. “We are incredibly pleased to have secured an AA rating on this transaction, our second Equipment Finance securitization since launching the product just over three years ago. This distinction underscores the trust and confidence investors place in our ability to deliver outstanding results and our pursuit to driving strength in this market."

“Our latest securitization completion showcases our team's exceptional expertise and dedication,” said Mike McConnell, Vice President of Treasury and Capital Markets. “Attracting a mix of 13 existing and 9 new investors on this transaction demonstrates our ability to broaden our investor base. With the inclusion of a pre-funding pool, we not only achieved a meaningful increase in the transaction size relative to our first Equipment Finance transaction but also secured an impressive advance rate of 87.35%. This success underscores the team’s relentless pursuit of excellence alongside growing investor confidence in Channel's platform capabilities."

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About Channel | Established in 2009, Channel is a leading full-service independent lender offering a single source solution for both equipment finance and working capital to small businesses exclusively through equipment finance companies. To date, Channel has funded over $2.2 billion to more than 24,000 businesses across the U.S., from its main office in Minnetonka, MN, along with additional locations in Atlanta, GA, Des Moines, IA, and Marshall, MN.