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, 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%.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.