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Today: Jun 13, 2024

Brex seals deal on securitization transaction for commercial charge card.

1 min read

TLDR:

  • Brex has closed its third securitization transaction, issuing $260M of charge card asset-based notes.
  • This transaction was oversubscribed and received an upgraded “AA” rating.

Brex, a leading AI-powered spend platform for modern companies, has announced the successful closing of its third securitization transaction out of its Brex Commercial Charge Card Master Trust. The transaction involved the issuance of $260M of charge card asset-based notes, with the highest-rated bonds receiving an “AA” rating. This marks an improvement from Brex’s previous securitizations, which were rated “A.”

In a statement, Benjamin Gammell, Chief Financial Officer at Brex, emphasized the importance of strong capital markets execution for the company. This milestone underscores the continued interest in Brex’s card business and strengthens its liquidity position as a financial counterparty to its customers.

Brex serves as the Sponsor, Servicer, Administrator, and Seller for the Series 2024-1 Notes, which represent the company’s third offering of asset-backed securities. These notes are collateralized by a portfolio of receivables from non-revolving corporate charge card accounts opened through the Brex platform. The company’s mission is to empower employees to make better financial decisions by providing a comprehensive spend solution that automates manual expense work and offers real-time tracking.

With tens of thousands of customers, including notable high-growth companies like DoorDash, Coinbase, and MasterClass, Brex continues to expand its financial products and services to a growing number of businesses. The successful securitization transaction reflects the capital markets’ recognition of the low risk and stability of Brex’s customer base.