Oportun sells $228 million in loans through amortizing asset-backed securitization
SAN CARLOS, CALIFORNIA. – April 4, 2022 – Oportun (Nasdaq: OPRT), a mission-driven fintech and digital banking platform, today announced the sale of $228 million in loans through the issuance of amortizing asset-backed notes that Secured by a pool of their unsecured and secured bonds are personal installment loans. Oportun and funds managed by Ellington Management Group provided collateral and co-sponsored the transaction, which totaled $400 million in asset-backed notes issued. The Notes have been priced at a weighted average fixed interest rate of 3.83% per annum. Oportun also sold its interest in the remaining interest in the pool. By selling its debentures and residual interest, Oportun secured a sale of loans at a total return of 6.75% on its interest in the transaction.
“We are excited about this transaction because the structure allowed us to sell our debt at an attractive price while raising capital and reducing our credit risk,” said Jonathan Coblentz, Oportun’s chief financial officer and chief administrative officer.
The offering consisted of three classes of fixed rate notes: Class A Notes, Class B Notes and Class C Notes. DBRS, Inc. assigned ratings of AA (low) (sf), A (low) (sf) and BBB ( low) (sf). Kroll Bond Rating Agency, LLC has assigned a rating of A (sf) and BBB (sf) to the Class A and Class B Notes, respectively. The Notes were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 144A of the Securities Act of 1933, as amended. Goldman Sachs & Co. LLC acted as sole bookrunner.
Oportun (Nasdaq: OPRT) is an AI-powered digital banking platform that aims to make financial health effortless for everyone. Driven by a mission to provide inclusive and affordable financial services, Oportun helps its nearly 1.5 million hard-working members meet their day-to-day credit, savings, banking and investing needs. Since its inception, Oportun has provided more than $12 billion in responsible and affordable lending, saved its members more than $2 billion in interest and fees, and automatically helped members earn more than $7.2 billion for rainy days and putting other needs aside. In recognition of its responsibly designed products, Oportun has been a Community Development Financial Institution (CDFI) certified since 2009.
Oportun Financial Corp. published this content on 04/06/2022 and is solely responsible for the information contained therein. Distributed by the public, unedited and unmodified, on 06 Apr 2022 20:51:41 UTC.