KBRA Assigns Preliminary Ratings to CPC Asset Securitization III, LLC, Series 2024-1 Notes
1 Aug 2024 | New York
KBRA assigns preliminary ratings to notes issued CPC Asset Securitization III LLC (the “Issuer”). CPC Asset Securitization III LLC will issue four classes of Series 2024-1 Notes totaling $125 million initially.
Channel Partners Capital (“CPC,” or the “Company”) is the Sponsor, Seller, and Servicer for CPC 2024-1. CPC was founded in 2009 and headquartered in Minnesota with offices in Minnesota, Iowa, New Jersey, and Georgia. The Company provides financing to small businesses through the use of a proprietary risk scoring model, transactional data and technology systems. As of June 30, 2024, the Company had approximately 213 employees and has funded over $2.44 billion to more than 25,900 transactions.
The proceeds of the sale of the Series 2024-1 Notes will also be used to 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 upsize the Series 2024-1 Notes, up to a maximum amount of $500 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.
The transaction also features a revolving period (the “Revolving Period”), which will end on the earlier of (i) prior to the close of business on August 31, 2027, approximately 36 months after the initial closing date and (ii) the date on which a Rapid Amortization Event has occurred. During the Revolving Period, the Seller will transfer additional Receivables to the Issuer, who will purchase such additional eligible Receivables so long as (a) the Issuer and the Receivables satisfy all conditions set forth in the transaction documents and (b) a Rapid Amortization Event has not occurred and is not continuing.
Credit enhancement will consist of subordination (except for the Class D Notes), excess spread, a reserve account (funded at closing) and the excess funding account.
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