Syracuse, N.Y. – Showcasing its position as a leader in the financial services industry, Bankers Healthcare Group — a source of innovative financial solutions and the creator of one of the largest community bank loan and product networks in the country — issued nearly $350 million in notes backed by high-quality commercial and consumer loans. This marks the largest deal in BHG’s history, helping to bolster its liquidity position and diversify its funding sources.
Kroll Bond Rating Agency, LLC, issued preliminary ratings of ‘AA (sf)’ for BHG’s Class A Notes, ‘A (sf)’ for Class B, and ‘A- (sf)’ for Class C. Credit Suisse Securities (USA) LLC, was the sole structuring agent and sole bookrunner on the transaction, which priced on April 23, 2021, at a weighted average coupon of 1.98%.
“I’m extremely proud of our second ABS transaction, which was met with significant demand from some of the largest and most influential investors. This important milestone positions us well for continued growth and expansion, particularly as we focus on bringing exciting new products to market,” said Al Crawford, Chairman/CEO and Co-Founder of Bankers Healthcare Group. “For nearly two decades, we’ve been driven by innovation and, this past year, experienced record loan volume. I look forward to the new opportunities that this funding channel will deliver.”
BHG announced a first ABS transaction in July 2020, which represented the first non-SBA small business loan transaction to go to market since the COVID-19 pandemic began. The deal was likely the first term ABS transaction backed by a mix of commercial and consumer loans, as well as the first small business or consumer loan transaction to be rated ‘AA’ by Kroll on the inaugural issuance1.
BHG’s latest deal was met with strong investor interest with all classes at least 4.5 times subscribed on the original size. BHG’s investor base increased significantly, with an additional 14 investors, bringing the total to 25 accounts. In 2021 alone, 20 unique investors put in 32 orders for over $1.4 billion across the capital structure.
“Developing a consistent investor group through the ABS markets will allow BHG to expand its loan offerings and grow its customer base. We have spent years understanding the needs of our customers and plan to expand our product offerings as we continue to grow,” said Dan McSherry, Chief Financial Officer for Bankers Healthcare Group. “A diversified funding base across multiple channels will allow BHG to execute on its strategic growth plans. We’re excited to partner with long-time ABS investors.”
BHG’s competitive lending solutions include business loans up to $500,000 with terms extending to 12 years and personal loans up to $200,000 with terms up to 7 years. BHG approves applicants within 24 hours and delivers funds in as few as three days with minimal paperwork. Pinnacle Financial Partners, Inc., and its subsidiary Pinnacle Bank have a 49% total interest in BHG, with the latter being the originating bank for all consumer loans and certain commercial loans offered.
About Bankers Healthcare Group
BHG is transforming the financial industry; leveraging the power of data, analytics, and cutting-edge technology to become not only one of the best sources for high-performing loans, but the creator of one of the largest community bank loan and product network in the country.
Since 2001, BHG has originated more than $8 billion in loan solutions to top-quality borrowers, which community and midsize banks can access via a state-of-the-art loan delivery platform. Building on nearly two decades of innovation, BHG and its family of brands now offer a full suite of financial solutions that span business, consumer, and SBA 7(a) loans, credit cards, collection services, risk management services, and point-of-sale financing with a focus in patient lending.
With record growth year after year, BHG continues to be recognized regionally and nationally: earning a spot on the Inc. 5000 for 14 years running and receiving accolades from Great Place to Work® and Fortune magazine, among others. BHG is partially owned by Pinnacle Bank (PNFP) and has headquarters in Davie, FL and Syracuse, NY.
1 Source: Finsight.com. Includes transactions from 2008-present categorized as “Consumer & Marketplace Loans” and “Small Business Loans”