Minnetonka, MN, July 16, 2025 - Channel, a leading independent provider of equipment financing and working capital solutions to small businesses nationwide, proudly announces the closing of its seventh securitization and fifth Working Capital securitization; an $85 million issuance of asset-backed notes, secured by a diverse portfolio of small business loans and advances spanning multiple industries.
Kroll Bond Rating Agency (KBRA) rated all four classes of notes: AA (sf), A (sf), BBB (sf), and BB (sf). Truist Securities served as the structuring agent and joint book-running manager, and Guggenheim Securities served as a joint book-running manager. The completion of the transaction expanded existing investor connections and attracted significant new investor interest. The success of this securitization reaffirms investor confidence in Channel, solidifying its position as a trusted and reliable market investment.
“We’re excited to see continued strong market support, through the positive response and efficient pricing of this latest issuance, a clear sign of sustained confidence in our platform following the acquisition by Onset Financial,” said Eli Sethre, Chief Financial Officer at Channel. “It not only highlights our collective expertise but also showcases our track record of consistent and predictable balance sheet credit performance."
“Having a front row seat to Channel’s capital markets team in action has been nothing short of impressive,” said Justin Nielsen, Founder & CEO, Onset Financial. “Their depth of expertise, strength of relationships, and the way they show up in the market speaks volumes. It’s clear this team operates at an extremely high level, and I’m excited to lend our support and see what we will accomplish together as we further combine forces.”
This latest transaction underscores Channel’s strong investor sponsorship despite global uncertainty. Channel strategically timed the deal to capitalize on a favorable market window while simultaneously redeeming an existing working capital ABS transaction. This marks the fifth consecutive year Channel has successfully accessed the ABS market, a representation of its sustained engagement and disciplined execution. Notably, this transaction reached a 100% advance rate through the Class D notes, making it the only working capital ABS deal to do so this year.
“Every time this team engages the ABS market, they elevate the standard, refine structures, deepen relationships, and never settle for good enough,” said Brad Peterson, Co-Founder & CEO. “Their continued execution will add rocket fuel to Channel moving forward, particularly given our recent acquisition by Onset Financial, and the support that will add to future opportunities as well.”
This successful issuance marks another step forward in Channel’s commitment to delivering strong, reliable opportunities to the investor community. With the added support and strategic alignment of Onset Financial, Channel is positioned to bring even more thoughtfully structured, high-quality transactions to market. As the team continues to deepen relationships and evolve its approach, investors can expect a consistent focus on performance, transparency, and long-term value.
About Channel | Established in 2009, Channel is a leading full-service independent lender offering a single source solution for both equipment finance and working capital to small businesses exclusively through equipment finance companies. To date, Channel has funded over $3 billion to more than 30,000 business in over 45,000 transactions across the U.S. With headquarters in Minnetonka, MN, the company also operates additional business units and locations in Kennesaw, GA, Mount Laurel, MJ, Des Moines, IA, and Marshall, MN.
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