September 26, 2021
Syracuse, N.Y. – September 26, 2021 – Bankers Healthcare Group (BHG), the leader in unsecured business and personal loans, and the creator of one of the largest community bank loan and product networks in the country—issued $400 million in notes backed by high-quality commercial and consumer loans. This is BHG’s third ABS transaction to date and marks the largest deal in BHG’s history, helping to bolster its liquidity position and further diversify its funding sources.
Kroll Bond Rating Agency, LLC issued a preliminary rating of ‘AAA (sf)’ for BHG 2021-B’s Class A Notes. This is the first AAA rating to be assigned to a class of BHG securitized notes, and demonstrates the quality of BHG’s loan products, the transaction’s structure, and the company’s long history of performance.
Credit Suisse Securities (USA) LLC, was the sole structuring agent and bookrunner on the transaction, which closed on September 22, 2021. Strong placement execution allowed the transaction to price at a weighted average coupon of 1.65% through a 93% advance rate, excluding the retained Class E tranche.
“Our third ABS transaction surpassed expectations and was quickly met with significant demand from the largest and most influential investors. This milestone will continue to position BHG for continued growth and expansion, especially as we look to bring new financial products to market, said Al Crawford, Chairman/CEO and Co-Founder of Bankers Healthcare Group. “I am very happy with the participants that were involved and the pricing that we received on our quality offering. I continue to believe that we have the most prolific funding sources in the world.”
The transaction was met with robust investor demand, receiving a collective 47 orders for over $1.6 billion across the capital structure. All note classes were at least 5.8 times oversubscribed on the initial offering size despite heavy competing supply in the structured products market during the placement window.
BHG’s first deal in July of 2020 represented the first non-SBA small business loan transaction to go to market since the COVID-19 pandemic began. 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 on its inaugural issuance1. BHG’s second deal in May of 2021 significantly increased its investor base by bringing on an additional 14 investors. Through three asset-backed securities offerings, 41 unique institutional investors have now participated in the BHG ABS shelf, including 16 new accounts added in the latest transaction.
“We’re excited to continue our expansion into the ABS markets,” said Dan McSherry, Chief Financial Officer of Bankers Healthcare Group. “A diverse investor base throughout multiple channels will strengthen our strategic growth plan and allow for increased loan offerings across numerous product lines.”
The stellar pricing of the transaction represents a significant reduction in deal-over-deal yield spread and highlights the continued success of the company’s ABS program. The outstanding result of the latest transaction showcases BHG’s continued expansion into the ABS market as a programmatic issuer.
About Bankers Healthcare Group
BHG is transforming the financial industry; leveraging the power of data, analytics, and cutting-edge technology to become one of the best sources for high-performing loans and the creator of one of the largest community bank loan and product networks in the country.
Since 2001, BHG has originated more than $9 billion in loan solutions to top-quality borrowers, which community and midsize banks can access via a state-of-the-art loan sale platform. Building on nearly two decades of innovation, BHG and its family of brands now offer a full suite of financial solutions that span business, consumer, and SBA 7(a) loans, credit cards, collection services, risk management services, and point-of-sale financing with a focus in patient lending.
With record growth year after year, BHG continues to be recognized regionally and nationally: earning a spot on the Inc. 5000 for 14 years running and receiving accolades from Great Place to Work® and Fortune magazine, among others. BHG is partially owned by Pinnacle Bank (PNFP) and has headquarters in Davie, FL and Syracuse, NY.
1 Source: Finsight.com. Includes transactions from 2008-present categorized as “Consumer & Marketplace Loans” and “Small Business Loans”