Kalamata Capital Group is sponsoring a $115 million securitization of future business-related receivables like merchant cash advances and loans, through the KCG Securitization II, Series 2026-1.
The second securitization for the company will issue three tranches of class A, B and C notes which all have a March 15, 2032 legal final maturity date. Kalamata Capital Group funds its securitizations through participation interests in two investment funds managed by Kalamata Asset Management according to analysts at Kroll Bond Rating Agency.
Kalamata Offshore Feeder Fund II and Kalamata Onshore Fund, which have assets of $234.6 million, will provide performance guarantees to Kalamata's other obligations in the deal, as originator and servicer, KBRA said.
Tranches A, B and C benefit from initial credit enhancement levels of 20.41%, 10.48% and 1.25%, KBRA said.
Enhancement includes excess spread of about 32.38%, a non-declining cash reserve account equaling 0.50% of the deal's aggregate balance of the series 2026-1, and overcollateralization. Also, KCG will repay noteholders through a senior-subordinate sequence.
KBRA assigns ratings of A-, BBB- and BB- to the A, B and C class notes, respectively.
Kalamata screens borrowers applying a list of qualifications, including that they must be in business at least six months, operate in an approved industry and earn monthly revenue of $20,000.
As of the deal's cutoff date, Dec. 31, 2025, merchants in the pool had an original financed amount of $118,960. On a weighted average (WA) basis, financings have an original term of 13.6 months, a factor rate of 1.32x a FICO score of 712.
In terms the industry's represented in the pool and their diversification, KBRA notes that specialty trade contractors, healthcare and eating places represent 18.5%, 15.9% and 13.8% of the pool, respectively.
The initial collateral pool will uphold Kalamata's financing conditions. That could shift during the prefunding period, but the revised collateral pool will have to meet certain concentration limits.
