Asset Based Lending Closes Record $200 Million Securitization

By Grace Kim

Asset Based Lending said it closed a $200 million unrated securitization on October 26, its largest transaction to date, bringing cumulative securitization volume to $723 million.

The transaction was the company’s fourth securitization. It priced on October 15 and reached the market in approximately three weeks, one of Asset Based Lending’s faster executions, the company said.

What does the $200 million transaction finance?

Asset Based Lending said a diversified pool of business-purpose residential real estate loans backs the transaction. The pool includes a substantial concentration of ground-up infill construction financing.

The company said the capital supports its lending platform, which finances:

• Property purchases
• Renovations
• New construction
• Long-term refinancing

Founded in 2010, Asset Based Lending has originated more than $4.4 billion in loans. The company said its products cover single-family, multifamily and mixed-use properties. It also said its emphasis on ground-up construction reflects 16 years of experience in that category.

CEO Kevin Rodman said:

“We are proud to lead the industry in financing ground-up construction, and to do it at a cost that keeps our pricing competitive for the builders we serve.

This transaction underscores the strength of the platform our team has built and the confidence investors have in our credit. Every one of these loans puts new housing on the ground.”

The collateral pool puts substantial weight on ground-up infill construction while retaining exposure to other residential property uses.

How did the deal reach a selective market?

Asset Based Lending said it completed the securitization amid heightened market volatility and increased investor selectivity. Management identified institutional investor relationships and a lending track record as important to maintaining capital access. That access supports continued project funding for borrowers across construction and other residential investment activities, the company said.

Performance Trust Capital Partners served as structuring agent. Nomura Securities International and Mizuho Securities USA acted as joint bookrunners.

The company completed an approximately three-week execution amid volatility and investor selectivity, with one structuring agent and two joint bookrunners.

Where does the collateral expand?

The collateral spans the Northeast, Sun Belt, Rust Belt and South, Asset Based Lending said. The geographic mix reflects the company’s expansion beyond its established Northeast presence.

The $200 million transaction adds to Asset Based Lending’s funding base as the company pursues national growth. The company said the securitization’s size and geographic mix illustrate both the expansion of its lending business and its use of capital markets financing to support further originations.

Capital Markets Head Daniel Gotay emphasized consistent funding availability across the life of a borrower’s project and said:

“Successfully executing this transaction amid market volatility reinforces the effectiveness of our capital markets strategy and the quality of our platform.

We have built durable relationships with institutional investors and established a track record they can underwrite, giving us consistent access to capital.

For our borrowers, that is what matters most: they can count on ABL to fund their projects from start to finish.”

The company’s 16 years of ground-up construction experience explain its emphasis in the category. Management linked the financing to competitive builder pricing and consistent funding from project start to finish.

The transaction expands the capital available for new construction and other residential loans across a broader set of U.S. regions, Asset Based Lending said. The deal puts the lender at $723 million in cumulative securitization volume and more than $4.4 billion in loan originations since 2010.

In practical terms, the transaction adds funding capacity and a wider geographic base for new originations.

What comes next?

The next test is whether that broader funding base converts into additional originations beyond the Northeast while preserving competitive builder pricing and start-to-finish capital access.