We can help CP Conduits bring more ABCP deals to market. At First Capital, we remove the barriers that prevent credit-worthy middle market companies from issuing receivables-backed commercial paper.

Securitization Services

CP Companion Loan Closes the Funding Gap

Conventional commercial paper limits a company's total borrowings to a formula based on receivables eligible under rating agency guidelines. By itself, commercial paper leaves borrowers with a substantial funding gap.

We close the funding gap with our CP Companion Loan. Our recourse, secured loan facility compliments the borrower's receivables-based securitization. Our CP Companion Loans are secured by:

• Good receivables that are ineligible under rating agency guidelines
• Overconcentrated credits
• Inventory

Using receivables-backed CP along with First Capital's CP Companion Loan, the borrower gets full credit availability plus a better blended rate than offered by syndicated loans. As a result, more companies can access the CP market.

Outsourcing Overcomes the A/R Servicing Barrier

Mid-market companies find it burdensome and costly to comply with the stringent receivables processing and reporting requirements of receivables-backed CP. When we service the receivables, the issuer avoids building costly in-house infrastructure for a reasonable variable expense.

Key A/R servicing features:

• Anti-fraud emphasis
• Hands-on and on-site management, including independent field examiners
• Improved transparency and reporting
• Active securitization compliance monitoring

First Loss Security Purchase Improves Terms

At First Capital, we "put our money where our mouth is." We are so confident in the integrity of our processes that we will purchase a first loss interest in securitizations where we provide the receivables securitization services.

By participating at a meaningful level, which is negotiated for each transaction, we enhance the overall credit profile of the transaction.

We can help you bring more CP deals to market.

Call us about Receivable Securitization:
1-800-619-0804

Corporate Office:
West Palm Beach, FL

Office Locations:
California
Florida
Georgia
Hong Kong
Oklahoma
New York
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