Press Release October 20, 2014
New York, NY “ CAN Capital, the market share leader in alternative small business finance, announced today the closing of its first capital markets asset-backed notes offering. In the $200 million securitization transaction, CAN Capital sold $191 million of fixed rate notes, $171 million of which are A rated notes by Standard & Poor’s and DBRS, and $20 million of which are BBB(low) and BBB- rated notes also by Standard & Poor’s and DBRS, respectively. The Company will utilize proceeds from the transaction, which diversified CAN Capital’s investor base, to further its growth strategies.
The notes are backed by a portfolio of small and mid-sized business loans and Merchant Cash Advances (MCAs) originated or acquired by the Company.
Our ability to successfully complete this significant transaction is a testament to consistent growth during our 16-year history and demonstrates the strength and quality of our portfolio said Daniel DeMeo, Chief Executive Officer, CAN Capital. Furthermore, the investment grade rating of this transaction is proof-positive of the power of our business model and superior performance over multiple market cycles.
The transaction is the latest development in a year of significant growth for CAN Capital. CAN Capital recently raised $33 million from Meritech Capital Partners, Accel Partners, and other private investors, with the funds utilized to expand and accelerate the growth of its small business finance offerings. CAN Capital also released the beta version of CAN Connect, a full suite of application program interfaces (APIs) that enables third-party providers to offer their small business customers access to working capital based on available merchant data.
Earlier this year, the Company reached a milestone of providing access to over $4 billion in capital with more than 139,000 transactions with small businesses. CAN Capital continues to leverage the advantage of its 16 years of customer performance data through the application of proprietary risk performance models and leading customer-facing technology, including an optimized digital application platform.
Shiladitya (Shila) Ray, Chief Financial Officer, CAN Capital, shared, Obtaining an investment grade rating on this transaction from both S&P and DBRS is a very big deal for CAN Capital. The ratings are a testament to our disciplined approach and continued emphasis on technology and customers. Our business has been growing profitably across key channels and partner types for the past several years and we expect to maintain our trajectory moving forward. The double-digit growth CAN Capital has been experiencing within fundings, revenue and other variables clearly indicates that our current strategies are paying off.
Guggenheim Securities served as the structuring agent and initial purchaser for the transaction.
About CAN Capital
CAN Capital, Inc., established in 1998, is the pioneer and market share leader in alternative small business finance, having provided access to more than $4 billion in capital for tens of thousands of small businesses in a wide range of locations and different business types.
As a technology-powered financial services provider, CAN Capital uses innovative and proprietary risk models combined with daily performance data to evaluate business performance and facilitate access to capital for entrepreneurs in a fast and efficient way. Its business evaluation model allows it to help small businesses qualify for more money than they could obtain elsewhere.
CAN Capital, an Inc. 5000 fastest-growing company, makes capital available to businesses through its subsidiaries: Merchant Cash Advances by CAN Capital Merchant Services, Inc., and business loans through CAN Capital Asset Servicing, Inc. (CCAS). Business loans obtained through CCAS are made by WebBank, a Utah-chartered Industrial Bank, member FDIC.
Note: Merchant Cash Advances are purchases of future payment card receivables from small and mid-sized businesses.