Sunbit has successfully completed its first asset-backed securitisation (ABS) valued at USD 200 million, earning an AA rating for the senior tranche.
The notes feature a fixed yield of 5.713%, with a two-year revolving period to accommodate future funding needs. The transaction was managed by Citi as the sole structuring agent and joint lead bookrunner, along with J.P. Morgan and ATLAS SP Partners serving as co-lead bookrunners.
This deal significantly increases Sunbit’s total funding capacity to over USD 1.5 billion when combined with its existing warehouse facilities that currently exceed USD 1 billion. More than 25 institutional investors participated, including insurance companies, asset managers, and hedge funds.
Market Entry Follows Company Growth
The securitisation comes after three consecutive quarters of positive operating income and a year-on-year revenue growth of 35%. Sunbit officials stated that entering the ABS market at this juncture was driven by stable profitability and ongoing expansion efforts. They also highlighted that the deal provides access to a broader institutional investor base at fixed rates, alongside enhanced funding for its existing portfolio of over 4.5 million transactions.
Through a partnership with Stripe, Sunbit has seen a 100% quarterly increase in gross merchandise volume from point-of-sale financing services. The company anticipates an 80% annual growth in co-branded credit card receivables as well.
The ABS offering underwent thorough due diligence by independent rating agencies, who evaluated Sunbit’s credit performance, operational processes, and financial reporting. Company officials emphasized that this process ensured the transparency and robust controls necessary for participation in institutional capital markets.
Sunbit specializes in technology for point-of-sale lending and other financial services. Its offerings include no-fee credit cards for major retailers and a buy now, pay later solution available at most U.S. auto dealership service centers. The company also provides financing options for dental services.