Fora Financial Closes Two New Credit Facilities, Increasing Borrowing Capacity to $120 Million
Specifically, 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 3-year revolving period and is expandable up to $500 million. The notes consist of three tranches (rated A, BBB-, and BB-) which blend to a 95% advance rate and a fixed per annum yield of 4.31%.
Fora Financial also entered a new three-year senior revolving credit facility with two of its existing lending partners, First Horizon Bank and AloStar Capital Finance, a division of Cadence Bank. 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 Chief Financial Officer. “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.”
These transactions cap what has been another year of accomplishments for Fora Financial. In September, the company was named to the Inc. 5000 list of the nation’s fastest growing private businesses for the sixth consecutive year, a feat achieved by only 3% of the ranking honorees.
About Fora Financial
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. The company places a high value on transparency and provides businesses with fast, personalized business loans and merchant cash advances, utilizing its state-of-the-art technology and unwavering customer service. In 2018, Fora Financial acquired a significant stake in US Business Funding, creating one the largest and broadest reaching organizations in the alternative SME lending space. The combined company has provided more than $1.8 billion of financing to small business owners and now employs over 170 people at its New York City, California, and Arizona locations.
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 [email protected]
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