Financing for pool of revolving small- and medium-sized businesses will secure $150 million in asset-backed securities (ABS), from a transaction called the Kapitus Asset Securitization VI.
Known as Kapitus 2026-1, the deal will sell notes through four tranches of class A, B, C and D notes, which all have a legal final maturity date of May 10, 2033, according to Kroll Bond Rating Agency.
The notes have initial credit enhancement levels of 34.15%, 21.10%, 9.90% and 0.30% to the A, B, C and D tranches, respectively.
Grant Thornton Advisors is the administrator on the deal, while Vervent is the backup servicer, KBRA said. Asset Securitization Report's deal database expects the deal to close on May 19.
Underlying assets are receivables bought from businesses at a discounted rate and referred to as merchant cash advances, according to KBRA. The fixed-rate business loans are extended to an array of U.S. industries.
Founded in 2006, Kapita has funded more than $8 billion to more than 57,000 unique merchants, using a proprietary risk scoring model, transaction data and technology systems, KBRA said.
The rating agency says that company funds receivables through two revolving securitizations totaling $575 million, and a $230.1 million warehouse line of credit from Truist, which matures in June 2027, KBRA said. There is also a $40.3 million warehouse line of credit from Forbright Bank as of Feb. 28, 2026, which matures in July 2028. That line of credit matures in July 2028.
The deal structure will repay interest to noteholders sequentially but will not pay any principal during the revolving period. The only exception would be to cure any borrowing base deficiencies, the rating agency said.
Kapita also includes a rapid amortization trigger, a reserve account equaling 0.30% of the aggregate pool balance, overcollateralization and excess spread, KBRA said.
KBRA assigns ratings of AA-, A-, BBB- and BB- to classes A, B, C and D, respectively.
