Fora Financial completed a $70 million issuance of notes secured by a pool of small business financing receivables – the company’s inaugural asset backed securitization. Guggenheim Securities served as sole structuring advisor and sole initial purchaser on the transaction, which has a three-year revolving period and is expandable up to $500 million.
The company also entered a new three-year senior revolving credit facility with two of its existing lending partners, First Horizon Bank and AloStar Capital Finance. The $50 million facility has a three-year revolving period and allows for increases in the maximum loan commitment up to $70 million. First Horizon Bank acted as sole lead arranger on the deal and will serve as administrative agent.
“Through these two transactions, Fora Financial has gained access to new institutional investors while simultaneously deepening our existing banking relationships, validating the company’s performance and diversifying our funding sources,” said Andrew Gutman, Fora Financial’s CFO. “Through the additional funding capacity, increased liquidity, and industry leading cost of capital achieved with these credit facilities, Fora Financial stands better-positioned than ever to deliver best-in-class capital solutions, processes and technology to meet the ever-changing needs of our customers and partners.”
Founded in June 2008, Fora Financial offers flexible financing solutions to small businesses in need of additional working capital to sustain or grow their enterprise.