National Funding Closes $125 Million Securitization with Guggenheim Securities

The $125 million facility has a 3-year revolving period, a 5-year legal final, and is expandable to $500 million.

National Funding, one of the largest U.S. specialty finance companies serving small- and medium-sized businesses, closed its second asset-backed securitization (ABS) for $125 million. Guggenheim Securities served as sole structuring advisor and the sole initial purchaser of the notes.

The facility has a 3-year revolving period, a 5-year legal final, and is expandable to $500 million. Led by National Funding CFO Michael van Asselt, the transaction closed on Thursday, September 22, and provides a 95% advance rate. National Funding served as risk retention sponsor. The notes were issued from a wholly owned subsidiary of National Funding, NFAS2 LLC, consisting of four classes. The most senior class of the three-tranche transaction earned a AA(sf) rating from Kroll Bond Rating Agency (KBRA). A revolving pool of short-term receivables secures the notes.

"We are committed to providing customized small business lending solutions, products, and resources to help foster small businesses' financial well-being," said van Asselt. To date, National Funding and its subsidiary, QuickBridge Funding have provided more than $4.5 billion in working capital solutions and equipment leasing for more than 80,000 small- to medium-sized businesses nationwide.

"As small businesses are finding themselves challenged in the current economic environment of inflation and aggressive rate hikes, closing on the $125 million securitization positions National Funding to continue to provide our support," said CEO and founder David Gilbert. "At National Funding, we believe in American small business owners. As one of the first alternative lenders in the marketplace with more than two decades of experience, we are healthier, stronger, and leaner than ever before."

To learn more about National Funding, visit https://nationalfunding.com

About National Funding

Founded in 1999, National Funding is a leading U.S. specialty finance company serving small- and medium-sized businesses. The Company's foundation serves American small business owners by providing funding solutions to meet their needs to reinvest in their day-to-day operations and help them grow. National Funding has provided more than $4.5 billion in working capital and equipment leasing for more than 80,000 small- to medium-sized businesses nationwide. In addition, National Funding's digital funding process has elevated its digital capabilities by delivering a fast and simple online application. For more information about National Funding, visit https://www.nationalfunding.com.

About Guggenheim Securities

Guggenheim Securities is the investment banking and capital markets business of Guggenheim Partners, a global investment and advisory firm. Guggenheim Securities offers services that fall into four broad categories: Advisory, Financing, Sales and Trading, and Research. Guggenheim Securities is headquartered in New York, with additional offices in Chicago, Boston, Atlanta, San Francisco, and Houston. For more information, please contact us at GSinfo@GuggenheimPartners.com.

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