BHG 2025-1CON highlights the strong demand for the BHG Financial consumer loan product.
SYRACUSE, NEW YORK / ACCESS Newswire / March 18, 2025 / BHG Financial, the leader in small business and unsecured personal loans and creator of one of the largest community bank networks in the country, sponsored BHG 2025-1CON, a $396 million ABS notes transaction that closed on March 13, 2025.
BHG 2025-1CON priced at a weighted average coupon of 5.44% with a 99% advance rate, a meaningful reduction in cost of funds compared to BHG Financial's prior transaction BHG 2024-1CON from about one year ago. The efficient execution came amidst significant market volatility and competing supply during the transaction timeline.
The transaction was received favorably by investors, with more than $1.05 billion in collective orders across the capital stack, representing 3.5x oversubscription on the initial deal size of $300 million. Based on the strong demand, BHG Financial upsized the transaction to $400 million in collateral while tightening the weighted average spread on the deal.
This marks the tenth ABS transaction sponsored by BHG since the start of its securitization program in 2020, and the second to be collateralized by 100% consumer loans originated by Pinnacle Bank and County Bank. The preceding eight securitizations sponsored by BHG Financial included a mix of small business commercial and consumer loans.
Kroll Bond Rating Agency, LLC and Fitch Ratings, Inc. both assigned a preliminary AAA (sf) rating on the Class A notes of BHG 2025-1CON.
Goldman Sachs & Co. LLC acted as the sole Structuring Agent on the transaction and as Joint Bookrunner alongside Truist Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., and ATLAS SP Securities. Co-Managers on the transaction were FHN Financial Securities Corp., Barclays Capital Inc., and Regions Securities LLC.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
KBRA's ratings are subject to all of the terms and conditions set forth in the related report and KBRA's website, which you should review and understand, and can be accessed here.
Fitch's ratings are subject to all of the terms and conditions set forth in the related report and Fitch's website, which you should review and understand, and can be accessed here.
About BHG Financial?
BHG Financial is a national leader in providing financial solutions to American consumers and financial institutions. Since 2001, BHG has originated over $18.5 billion in loans, helping customers achieve greater financial flexibility in their business and personal lives. With customizable financing, a simplified process, longer loan terms, and personalized service, the BHG Financial approach to lending helps set the company apart in the market. BHG Financial also provides high-quality assets to more than 1,600 national banks that are members of its Institutional Network, one of the largest in the country. Members have access to the BHG Financial state-of-the-art loan delivery platform and premium regulatory services. BHG Financial is partially owned by Pinnacle Bank (PNFP) and has headquarters in Fort Lauderdale, FL, and Syracuse, NY. For more information, visit?bhgfinancial.com/.
Contact Information
Meredith Crawford
SVP, Corporate Communications
press@bhg-inc.com
Brooke Niemeyer
Director of Communications
bniemeyer@bhg-inc.com
SOURCE: BHG Financial
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