Global financial service platform Kabbage announced on Tuesday it has secured a $200 million revolving credit facility to support its growth for providing U.S. small businesses access to flexible, online funding. According to Kabbage the senior tranche of the new dual-class transaction earned an A(sf) rating from a leading nationally recognized statistical rating organization.
“The debt capital commitment is provided by a subsidiary of a leading life insurance company, managed and administered by 20 Gates Management, and Atalaya Capital Management.”
While sharing more details about the facility, Kabbage Head of Capital Markets, Deepesh Jain, stated:
“This transaction further diversifies Kabbage’s committed sources of funding and prepares us to meet the escalating demand for capital access among small businesses. 2019 has proven to be a tide-shifting year as customers accessed more than $670 million from Kabbage in Q2 2019, well surpassing our previously set record last quarter.”
The facility comes just a couple of months after Kabbage completed its $700 million securitization, which it claimed at the time to be the largest asset-back securitization (ABS) by a small business online lending platform to date. To date, Kabbage has provided more than 185,000 U.S. small businesses access to over $7 billion in capital.
