VerticalNet, an online business-to-business e-commerce enabler, recently launched an asset-backed commercial paper facility via administrator PNC Bank.
The company securitized a $96 million portfolio of receivables, issuing approximately $75 million in commercial paper.
Chief Financial Officer Gene Godick said that the company will consider entering the term market down the line, as its business grows.
"It's a very viable alternative," Godick said. "We considered it [this time]. We could have done it, it just didn't make sense at the time."
VerticalNet originated its assets via NECX.com, the company's online marketplace for technology-related products, such as semiconductors, computer products and networking equipment.
The facility has a funding limit of $250 million, and the company will continue selling assets into it on an ongoing basis.
According to the VerticalNet, the securitization reduces the company's cost of capital by 3%.