Brex Inc. Closes Oversubscribed Third Securitization Issuance

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Mar 20, 2024, 14:31 ET

Transaction lowers funding costs, allowing Brex to increase investment in customer-facing product

SAN FRANCISCO, March 20, 2024 /PRNewswire/ -- Brex, a leading AI-powered spend platform for modern companies, today announced the closing of its third securitization transaction out of its previously established Brex Commercial Charge Card Master Trust.

The transaction included the issuance of $260M of charge card asset-based notes rated by Kroll Bond Rating Agency. The highest-rated bonds obtained an "AA" rating. This is an improvement in rating from Brex's first and second securitizations, which were rated "A". The transaction was meaningfully oversubscribed.

"Strong capital markets execution has always been an important part of Brex, as we've looked to use stable, low-cost funding to bolster our customer offering," said Benjamin Gammell, Chief Financial Officer at Brex. "Since our inaugural securitization issuance in 2021, the capital markets have recognized the low risk and stability of our customer base, which is manifested in this upgraded rating."

This milestone highlights the continued interest in Brex's card business, which provides valuable financial products and services to our growing number of businesses. It also bolsters the Company's liquidity position and strength as a financial counterparty to its customers.

Brex is the Sponsor, Servicer, Administrator, and Seller for the Series 2024-1 Notes. The Series 2024-1 Notes represent the Company's third offering of asset-backed securities sponsored by Brex. The Series 2024-1 Notes are collateralized by a portfolio of receivables originated in non-revolving corporate charge card accounts. The accounts are opened through the Brex platform and ultimately approved and originated through Brex's partner bank relationships.

About Brex
Brex is the AI-powered spend platform. We transform finance teams from reactive no-sayers to proactive growth drivers. With Brex, companies spend with confidence by empowering employees to make smarter financial decisions from anywhere. Brex provides corporate cards, business accounts, and global payments, plus intuitive software for travel and expenses, that make it easy to plan and track all company spend in one place, in real time. Tens of thousands of companies from startups to global enterprises — including DoorDash, Flexport, and Compass — use Brex to proactively control spend, reduce costs, and increase efficiency on a global scale.

Contact:
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SOURCE Brex