KBRA Assigns Preliminary Ratings to Credibly Asset Securitization II LLC, Series 2024-1
29 Feb 2024 | New York
KBRA assigns preliminary ratings to four classes of notes (the “Notes”) issued by Credibly Asset Securitization II LLC, Series 2024-1 (“CRDBL 2024-1”).
Credibly (or the “Company”) is the Sponsor, Seller, and Servicer for CRDBL 2024-1. Credibly was founded in 2010 and provides financing to small and medium-sized businesses through the use of proprietary risk scoring models, transactional data and technology systems. According to the Company, Credibly has provided businesses with access to approximately $2.25 billion across over 46,000 fundings. Credibly has over 180 employees with offices in New York, New York; Southfield, Michigan; and Tempe, Arizona.
CRDBL 2024-1 represents the Company’s third offering of asset-backed securities sponsored by Credibly and the third transaction rated by KBRA. CRDBL 2024-1 is collateralized by business loans (“SMB Loans”) made to small-and medium-sized businesses (“Merchants”) and future receivables purchased from Merchants at a discounted purchase price (“Factored Receivables”). A Factored Receivable is also commonly referred to as a Merchant Cash Advance (“MCA”).
Credibly Asset Securitization II LLC (the “Issuer”) will issue four classes of Series 2024-1 Notes totaling $73.95 million. The proceeds of the sale of the Series 2024-1 notes will also be used to pay down the Company’s outstanding ABS facility, CRDBL 2021-1, purchase receivables, fund the reserve account and pay related fees and expenses. The Series 2024-1 Notes are “expandable” term notes such that at any time during the Revolving Period, the Issuer may periodically issue additional Notes, up to a maximum amount of $225 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.
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