Sunbit Inc., a Westwood-based financial technology company, announced the completion of its inaugural asset-backed securitization.

The securitization, otherwise known as an ABS, is a financial operation that turns assets such as loans into marketable securities that can be sold to investors.

The ABS is a $200 million note offering, priced at an all-in fixed yield of 5.71%. The transaction was co-led by Citigroup Inc., JP Morgan Chase & Co. and Atlas SP Partners LP.

It also supports Sunbit’s future funding needs with a two-year revolving period.

Sunbit’s niche

Founded in 2016, Sunbit offers point-of-sale financing, which typically has a limit of $1,000. The financing is offered to a wide range of consumers, including subprime borrowers. Sunbit offers buy-now-pay-later financing for dental check-ups to car repairs. Sunbit previously secured its debt warehouse facilities from J.P Morgan, Mizuho Bank LTD, Ares Management Corp. and Waterfall Asset Management. Sunbit has $1 billion in a debt warehouse facility, or a short-term revolving credit line, said Chief Executive Arad Levertov.

That “gives us a strong diversification of funding … We are profitable and well-positioned for growth with many new investments and initiatives accelerating revenue,” he said.

Levertov added that the ABS transaction “provides Sunbit with access to a massive new institutional investor base at attractive fixed rates and adds significant funding capacity to our existing 4.5 million transaction portfolio, supporting our accelerating expansion.”

Sunbit will use the funding from the ABS to continue to develop its dental financing and auto repair businesses and expand in new ventures. The company will seek to expand its co-branded credit card with retail partners, which it currently offers with several retailers.

Sunbit also plans to invest in embedded finance, where it will be available as part of merchant software and payment systems.