KBRA Assigns Preliminary Ratings to KCG Securitization II, LLC, Series 2026-1
4 Mar 2026 | New York
KBRA assigns preliminary ratings to three classes of notes (the “Notes”) issued by KCG Securitization II, LLC, Series 2026-1 (“KCG 2026-1” or the “Issuer”).
Kalamata.com, LLC (“Kalamata”), through its subsidiaries and affiliates, Kalamata Capital Group, LLC (“KCG”, the “Company” or “Servicer"), Black Olive Capital II LLC and Black Olive Capital LLC (“Black Olive Originators”), provides financing to small and medium-sized business through merchant cash advances and small business loans. Kalamata was founded in 2013 and has provided businesses with access to over $1.15 billion across over 11,500 fundings based on its proprietary risk scoring models, traditional underwriting, transactional data, and technology systems. Kalamata has approximately 62 employees with offices in Bethesda, MD and New York, NY.
KCG 2026-1 is the second securitization for the Company. This transaction is secured by a revolving portfolio of receivables (“Receivables”) consisting of participations in - future receivables (“Business Advances”) purchased from small- and medium-sized businesses (“Merchants”) at a discounted purchase price. Business Advances are also commonly referred to as a Merchant Cash Advance (“MCAs”) and Business Loans (“Business Loans”) with fixed terms and rates made to Merchants.
KCG Securitization II, LLC will issue three classes of Series 2026-1 Notes, Class A Class B and Class C Notes totaling $115.0 million. The proceeds of the sale of the Series 2026-1 Notes will be used to pay down the Company’s outstanding ABS facility, KCG 2024-1, purchase receivables, fund the reserve account, and pay related fees and expenses. The transaction features a revolving period, which will end on the earlier of (i) prior to the close of business on February 28, 2029, approximately 36 months after the initial closing date of Series 2026-1 and (ii) the date on which a Rapid Amortization Event has occurred. The Series 2026-1 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 $500 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.
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