Less than six months after announcing the first rated securitization of its receivables portfolio, Credibly, a small and medium-sized business lending platform, announced the next phase in its balance sheet growth strategy by launching a $10 million investment grade-rated senior debt offering. The transaction closed late last month.
Credibly reported that it and its products have been exceeding expectations for years and securitizing its portfolio provides a means to significantly lower its cost of capital and compete more aggressively in the SMB lending space. The $61 million asset-backed transaction announced in November is expandable to $237.5 million to support the company’s anticipated growth but was only the first phase of its funding strategy. Michael Seneski, CFO of Credibly, stated:
“We are proud of our growth, profitability, and the performance of our assets. Solidifying the strength of our balance sheet with this $10 million Senior Debt Offering is the next step in continuing our aggressive growth trajectory.”
Credibly also revealed the Senior Debt Offering was deemed investment grade quality by SEC-registered Egan-Jones Ratings Company, reaffirming Credibly’s abilities as both an originator and a servicer. The rated issuance further lowered the company’s cost of capital, which will strengthen its financial position and help to fund continued growth and profitability. Ryan Rosett, Founder and Co-CEO of Credibly, went on to add:
“This is a major milestone. The investment grade rating shows that we can continue to scale our operations while maintaining reliable, stable, and predictable performance, while financing businesses which would typically be overlooked.”