Kalamata.com Closes Securitization of Up to $500 Million

BETHESDA, Md.–(BUSINESS WIRE)–Kalamata.com LLC, a leading online capital provider of fast, simple, and trusted financing options for small businesses, announced the closing of a successful securitization of a revolving portfolio of business advance receivables. The transaction, which closed on April 9, 2024, involved the issuance of two classes of notes initially totaling $80 million, and expandable up to $500 million.

This milestone is a significant achievement for Kalamata, with KBRA assigning an investment grade “BBB” credit rating to the senior notes. The issuance was well received by the capital markets and showcased Kalamata’s strong origination, underwriting, scoring, data analytics, and customer service capabilities. The weighted average credit score of the small business owners, annualized revenue, and time in business in the initial pool is 716, $5.8 million, and 12 years, respectively. For context, FICO announced that the national average FICO® Score was 716 in 2022.

Kalamata believes that small- and medium-sized businesses are the engine of the U.S. economy, and that business owners should be able to access the capital they need, when they need it. Kalamata’s transaction comes at a critical time for small businesses because, unfortunately, recent regional bank troubles have led to an even greater retrenchment of traditional banks’ lending to small businesses.

For more than ten years, Kalamata has provided capital to thousands of hard-working small business owners and entrepreneurs to help them grow, create jobs, and better serve their communities. This securitization, and Kalamata’s continued investment in new technologies, further strengthens the company’s position as a leader in the alternative finance and private credit industries.

Steven Mandis, Kalamata’s Founder and Chairman, stated, “I am excited to close this securitization, which is testament to our team’s hard work and dedication in providing responsible and innovative financing solutions for small businesses. It also positions Kalamata to continue to support the growth and success of SMBs across the country and to innovate and adapt to meet their evolving financing needs.”

Mandis added, “Kalamata has expanded significantly in large part due to the contributions of Brandon Laks and Connor Phillips, who were among our first employees. After becoming Co-Presidents, they have led their teams to accelerated growth and have set records in volume and revenues.”

Guggenheim Securities served as sole structuring advisor and the sole initial purchaser of the notes. Eversheds Sutherland, Miles & Stockbridge, and Holland & Knight provided legal advice to Kalamata.

About Kalamata

Kalamata combines technology, data science, experience, and common sense to provide fast, simple, and trusted online financing options to small- and medium-sized businesses across the nation to help them grow, create jobs, and better serve their communities. Kalamata can provide approvals for up to $500,000 within hours.

Chairman Steven Mandis was previously an owner of the online small business capital provider, Rapid Financial Services. After its sale in 2013 to Rockbridge Growth Equity, the private equity arm of Dan Gilbert—owner of the Cleveland Cavaliers basketball team and Quicken Loans, Mandis founded Kalamata, named after the area where his parents immigrated from in Greece.