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KBRA Assigns Preliminary Ratings to NFAS, LLC Series 2019-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the “Notes”) issued by NFAS, LLC Series 2019-1 (“NFAS 2019-1”).

National Funding, Inc. (“National Funding”) and QuickBridge Funding (“QuickBridge”, together with National Funding, the “Company”) provide financing to small and medium-sized business through the use of proprietary risk scoring models, transactional data and technology systems. This transaction, NFAS 2019-1, is the first securitization for the Company. The proceeds of the sale of the Series 2019-1 Notes will be used to purchase receivables, fund the reserve account and pay related fees and expenses. The Notes are “expandable” term notes such that at any time during the revolving period, the Issuer may periodically issue additional Notes, up to a maximum amount of $500.0 million, as long as certain conditions are met, including receipt of Rating Agency Confirmation.

The Company uses proprietary risk models to assess applicants for qualification, loan sizing and risk-adjusted pricing and has funded over $3.4 billion to more than 60,000 businesses. National Funding and QuickBridge offer business loans to merchants in a wide array of industries throughout the United States. They operate separately, maintaining separate underwriting criteria, scoring models, technology systems and bidding on loan prospections, but maintain shared services such as legal and collections.

The transaction features a revolving period, which will end on the earlier of (i) July 31, 2022, approximately 36 months after the closing date and (ii) the date on which a rapid amortization event has occurred that is not later cured or waived. Credit enhancement will consist of overcollateralization, subordination (in the case of the Class A and Class B Notes), excess spread, an excess funding account, and a reserve account, which will initially be funded in an amount equal to 0.50% of the aggregate balance of the Series 2019-1 Notes divided by 95.00%.

Notes

Initial Principal Balance

Preliminary Ratings

Class A

$88,421,000

A (sf)

Class B

$20,842,000

BBB- (sf)

Class C

$10,737,000

BB- (sf)

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

Chris Baffa, Associate Director

(646) 731-3312

cbaffa@kbra.com


Pritam Patel, Associate

(646) 731-3374

ppatel@kbra.com


Eric Neglia, Managing Director

(646) 731-2456

eneglia@kbra.com


Lenny Giltman, Senior Managing Director

(646) 731-2378

lgiltman@kbra.com


Sandy Azer, Associate Director

(646) 731-1200

sazer@kbra.com

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