02.22.2022

BHG Closes Fourth ABS Transaction, Issues $500 Million in Notes 

BHG Closes Fourth ABS Transaction, Issues $500 Million in Notes 

The latest transaction carries a AAA(sf) rating from Kroll Bond Rating Agency and marks the largest ABS deal in BHG’s history 

Syracuse, N.Y. – February 10, 2022 – 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 $500 million in notes backed by high-quality commercial and consumer loans.  

This is BHG’s fourth 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. The deal was upsized to $500 million from its initial offering amount of $400 million based on solid investor demand for the notes, making it the largest ABS issuance by the company to date. 

Kroll Bond Rating Agency, LLC (KBRA) issued a rating of ‘AAA (sf)’ for BHG 2022-A’s Class A Notes, in line with the senior tranche rating on BHG’s preceding transaction, BHG 2021-B, which closed in September of last year. In January, KBRA published upgraded ratings for two classes of notes in BHG’s inaugural transaction, BHG 2020-A, with the Class A tranche being revised to ‘AAA (sf)’. 

Credit Suisse Securities (USA), LLC acted as the sole structuring agent and bookrunner, and facilitated favorable execution amidst volatile market conditions and a plethora of competing supply in the structured products market during the placement window. The notes were issued through 98.5% advance rate, excluding the retained portion of the Class E tranche. This represents the highest advance rate attained in an offering by BHG and provides efficient capital for the firm’s expansion as a leading financial services provider. 

“Our fourth ABS transaction was met with significant demand, surpassing our expectations, and drawing interest from some of the largest and most influential investors. This latest milestone will continue to position BHG for growth, especially as we look to bring exciting and beneficial financial products to market,” said Al Crawford, Chairman/CEO and Co-Founder of BHG Financial. “Our team’s focus and innovative mindset has continued to bring in record volume for the company. New products and projects on the horizon will only further our trajectory into 2022 and beyond. I look forward to all of the opportunities that this funding channel will deliver.”  

As the fourth ABS securitization in the company’s history, the deal raises the total issuance amount through the ABS platform to over $1.4 billion. 

“A consistent investor group through ABS markets allows BHG to continue to expand its loan offerings and grow its customer base. We have spent the last twenty years with a focus on listening to our customer base and creating products to meet their needs,” said Dan McSherry, Chief Financial Officer for BHG Financial. “A diversified funding base across multiple channels will allow BHG to continue to grow both our product lines and consumer bases through strategic growth plans. We’re excited to continue our work with ABS investors.” 

The company, which surpassed $10 billion in total cumulative originations in 2021, intends to continue scaling its growth through programmatic ABS funding rounds based on the competitive spreads and depth of the securitized products market. 

About BHG 

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 $10 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 on 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.   

To learn more about BHG’s financial solutions, visit www.bankershealthcaregroup.com, and for more information about the BHG Bank Network, click here. Follow BHG on LinkedIn, Facebook, and Twitter.  

Accolades

Best Places to Work South Florida Business Journal
Great Place to Work Certified
American Banker Best Places to Work in Fintech 2021
Inc. Best Places to Work 2019
Best Places to Work in Financial Services and Insurance
Great Place to Work Certified 2020
CNY Business Journal Great Place to Work
Inc. Best Places to Work 2020 Honoree