Kabbage, an online financial services, technology and data platform, priced $525 million of fixed-rate, asset-backed notes in a private securitization transaction.

The facility is expandable to $1.5 billion. The notes will be issued in four classes by Kabbage Asset Securitization, a newly formed, wholly owned subsidiary of Kabbage. The senior class of notes is anticipated to be rated “A(sf)” on the closing date by Kroll Bond Rating Agency (KBRA).

Guggenheim Securities is serving as sole structuring advisor and initial purchaser of the notes. The securitization is expected to close on or about March 20, 2017, and is subject to customary closing conditions.

This represents the largest asset-backed securitization of small business loans in the online lending industry, next to Kabbage’s prior, expandable, ABS note issuance in March 2014. This new facility will enable Kabbage to continue to broaden its product mix by offering larger credit lines and longer term loans.

“In a time when the fintech industry has experienced challenges, our automated technology and data platform has demonstrated to investors Kabbage’s ability to deliver superior and predictable performance on small business loans as an asset class,” said Kevin Phillips, head of Corporate Development for Kabbage

In March 2014, Atlanta-based Kabbage was the first technology-enabled, financial services company to issue asset-backed notes secured by small business loans. This transaction was initially $270 million and was subsequently expanded to $545 million by the issuance of additional notes to multiple capital markets investors. This facility enabled Kabbage to dramatically scale its volume to extend over $2.7 billion through the platform.

The anticipated KBRA rating of “A(sf)” reflects an upgrade from the rating on Kabbage’s prior securitization. “Kabbage’s strong historical performance over the last three years played a key part in KBRA’s upgrade,” said Anthony Nocera, managing director at KBRA. “The upgrade is based on several structural improvements and the existence of more historical performance data relating to Kabbage’s collateral.”