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BHG Financial Completes First Consumer-Only ABS Transaction, Closes Over $273M in ABS Notes

The latest transaction carries a AAA (sf) rating from both Fitch Ratings Inc. and Kroll Bond Rating Agency, LLC on the Class A Notes.

BHG Financial (“BHG”), the leader in small business and unsecured personal loans and creator of one of the largest community bank networks in the country, sponsored BHG 2024-1CON, a $273.3 million ABS notes transaction that closed on March 25, 2024. 

This ABS transaction is a significant milestone for BHG Financial, as it is the company’s first to be collateralized by 100% consumer loans. BHG 2024-1CON marks the ninth ABS transaction sponsored by BHG since the start of its securitization program in 2020. The preceding eight securitizations sponsored by BHG included a mix of small business commercial and consumer loans. Since its inaugural July 2020 transaction, the firm has successfully closed $2.9 billion in cumulative securitization volume. 

“We are pleased with Wall Street’s demand for our first 100% consumer issuance, which reached oversubscription in less than a day,” says Albert Crawford, Chairman/CEO and Co-founder of BHG Financial. “Investors base their pricing and appetite on the quality of our loans, and the successful execution of this deal showcases the quality of our originations team and predictive credit models.” 

Fitch Ratings, Inc. and Kroll Bond Rating Agency, LLC have both assigned an AAA (sf) rating on the Class A Notes of BHG 2024-1CON. 

Truist Securities, Inc. acted as the sole Structuring Agent on the transaction and as Joint Bookrunner alongside BMO Capital Markets Corp. and Goldman Sachs & Co. LLC. Co-Managers on the transaction were FHN Financial Securities Corp., Regions Securities LLC, and Capital One Securities, Inc. 

The transition to an all-consumer loan structure was received favorably by investors, with over $1.5 billion in collective orders across the capital stack and the most unique purchasers of any deal in BHG’s history. 

“The number of unique investors in this deal sends a strong message to the market that BHG has robust consumer funding through all channels,” says Dan McSherry, Chief Financial Officer at BHG Financial. 

Each of the five tranches of notes was oversubscribed, including a 6x oversubscription on the Class A notes and a 9x oversubscription on the Class C. 

The transaction priced at a yield of 7.041%, as a combination of positive deal-related technicals and a supportive market backdrop drove spread tightening of approximately 34 basis points from initial price talk and the overall borrowing cost meaningfully lower compared to 2023 offerings. 


About BHG Financial 
BHG Financial (BHG) is a national leader in providing financial solutions to professionals 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, BHG Financial’s approach to lending sets it apart in the market. BHG Financial also provides high-quality assets to over 1,600 national banks that are members of its Institutional Network, one of the largest in the country. Members have access to BHG’s 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. To represent the company's growth and dedication to continuously expanding its services, Bankers Healthcare Group became BHG Financial in 2021. For more information, visit https://bhgfinancial.com/. 

Contact Information:
Meredith Crawford
SVP, Corporate Communications
[email protected]


Original Source: BHG Financial Completes First Consumer-Only ABS Transaction, Closes Over $273M in ABS Notes
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