Online lender Kabbage has hired Guggenheim Securities to sell its upcoming US$500m small business loan securitization, according to marketing materials viewed by IFR.
The company specializes in offering merchants lines of credit through the internet of up to US$150,000 for six to 12 months, according to a Kroll Bond Rating Agency pre-sale report.
The new bond deal comes amid a risk-on mood that has investors lapping up all types of bonds in the ABS market. nL1N1G113Y
The Kabbage trade is backed by receivables to companies with an average 9.2-year business history, US$4,500 remaining balance and 41.11% yield at origination, according to Kroll.
Sole bookrunner Guggenheim will hold one-on-one calls with investors on Thursday and Friday and individual meetings next week at the annual ABS conference in Las Vegas.
Kroll is expected to assign the fixed-rate deal Single A to Single B ratings. Proceeds are slated to refinance Kabbage’s first securitization in 2014.
A call and email to Guggenheim were not immediately returned.