BHG 2025-2CON is a 100% consumer loan transaction, highlighting the growing demand for the consumer loan product.
DAVIE, FL / ACCESS Newswire / August 18, 2025 / BHG Financial, the leader in small business lending and facilitating unsecured personal loans and creator of one of the largest community bank networks in the country, sponsored BHG 2025-2CON, a $500 million ABS transaction that closed on August 14, 2025. This is the largest ABS transaction for the company to date.
BHG 2025-2CON priced at a weighted average coupon of 5.25% with a 99% advance rate, a meaningful reduction in cost of funds compared to BHG Financial's prior transaction, BHG 2025-1CON.
The transaction was received favorably by investors, generating orders exceeding $1.51 billion, representing a 3.0x oversubscription at the upsized amount. The strong investor demand allowed BHG Financial to upsize the transaction while tightening the weighted average spread, which resulted in the largest gross spread of any preceding ABS deal.
This marks the 11th 144A ABS transaction sponsored by BHG since the start of its securitization program in 2020, and the third to be collateralized by 100% consumer loans originated by Pinnacle Bank and County Bank. The other eight securitizations sponsored by BHG Financial included a mix of small business commercial and consumer loans.
Kroll Bond Rating Agency, LLC and Fitch Ratings, Inc. both assigned a preliminary AAA (sf) rating on the Class A notes of BHG 2025-2CON.
Truist Securities, Inc. acted as the sole Structuring Agent on the transaction. Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., BMO Capital Markets Corp., and Capital One Securities, Inc., were joint bookrunners. Co-Managers on the transaction were ATLAS SP Securities, a division of Apollo Global Securities LLC, Regions Securities LLC, and FHN Financial Securities Corp.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
KBRA's ratings are subject to all of the terms and conditions set forth in the related report and KBRA's website, which you should review and understand, and can be accessed here.
Fitch's ratings are subject to all of the terms and conditions set forth in the related report and Fitch's website, which you should review and understand, and can be accessed here.
About BHG Financial
BHG Financial is a national leader in providing financial solutions to American consumers and financial institutions. Since 2001, BHG has facilitated more than $24 billion in loans, helping customers achieve greater financial flexibility in their business and personal lives. With customizable financing, a simplified process, longer loan terms, and personalized service, the BHG Financial approach to lending helps set the company apart in the market. BHG Financial also provides high-quality assets to more than 1,700 national banks that are members of its Institutional Network, one of the largest in the country. Members have access to the BHG Financial state-of-the-art loan delivery platform and premium regulatory services. BHG Financial is partially owned by Pinnacle Bank and has headquarters in Fort Lauderdale, FL, and Syracuse, NY. For more information, visit bhgfinancial.com.
Contact Information
Brooke Niemeyer
Director of Communications
bniemeyer@bhg-inc.com
SOURCE: BHG Financial
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View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/bhg-financial-closes-a-new-abs-transaction-of-500-million-1062305
