BHG Financial Completes Sixth ABS Transaction, Closes Over $400M in ABS Notes

The latest transaction carries a AAA (sf) rating from both Fitch Ratings and Kroll Bond Rating Agency on the Class A Notes.

Syracuse, NY—BHG Financial (BHG) today announces the issuance of approximately $412 million in ABS notes backed by high-quality commercial and consumer loans. This marks the third transaction completed in calendar year 2022.  

The transaction, BHG 2022-C, was upsized from its original issuance amount of approximately $309 million based on strong investor demand across each of the five classes of notes.  

Kroll Bond Rating Agency, LLC (“KBRA”) and Fitch Ratings, Inc. (“Fitch”) have both assigned a ‘AAA (sf)’ rating on the Class A Notes of BHG 2022-C, consistent with the ratings on BHG Financial’s preceding transaction, BHG 2022-B, which closed in June of this year. 

Earlier this month, KBRA published upgraded ratings for three classes of notes in BHG’s second transaction, BHG 2021-A, with the Class A tranche being upgraded to ‘AAA (sf)’. Additionally, the rating agency affirmed its ratings on 13 other classes of notes issued by BHG Securitization Trusts as part of the report. 

“This transaction proves we are able to access efficient capital in challenging markets and demonstrates BHG Financial has the highest level of expertise and sophistication when it comes to underwriting,” says Al Crawford Chairman/CEO and Co-founder of BHG Financial.   

Credit Suisse acted as the sole structuring agent on the transaction and as joint bookrunner alongside BMO Capital Markets and Capital One Securities. Co-managers on the transaction included Regions Securities, Wedbush Securities, and FHN Financial Securities Corp. Well received by both existing and first-time investors in the program, the number of unique participants in the BHG ABS shelf surpassed 50 accounts.  

“As in the past, we were pleased with investor response to BHG’s latest ABS offering. The increased level of interest across the capital stack speaks to the quality and value of our assets,” says Dan McSherry, Chief Financial Officer at BHG Financial.  

With the closing of BHG 2022-C, the firm has successfully closed more than $2 billion in cumulative securitization volume across six deals through the ABS market since its inaugural transaction in July of 2020. 

About BHG Financial  
BHG Financial 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 $12 billion in loan solutions to top-quality borrowers, which community and midsize banks can access via a state-of-the-art loan delivery platform.  

BHG Financials’ dedication to providing services that meet the needs of its clients has led to the creation of a full family of brands that range from business, consumer, and SBA 7(a) loans to credit cards, risk management services, and point-of-sale financing.  

With record growth year after year, BHG continues to be recognized regionally and nationally, earning a spot on the Inc. 5000 for 15 years running and receiving accolades from Great Place to Work® and Fortune magazine, among others.  

BHG Financial is partially owned by Pinnacle Bank (PNFP) and has headquarters in Davie, FL and Syracuse, NY. To represent the company’s growth and dedication to continuously expanding their services, Bankers Healthcare Group became BHG Financial in 2021.  

Find out more about the company’s financial solutions at https://bhgfinancial.com/. For more information about the BHG Bank Network, click here. Follow BHG on LinkedIn, Facebook, Instagram, and Twitter.