SAN CARLOS, Calif., March 8, 2021 (GLOBE NEWSWIRE) – Oportun Financial Corporation (Oportun), a financial services company leveraging its digital platform to provide hardworking workers with responsible, affordable and creative alternatives to securities lending automobiles, today announced the issuance of $ 375 million of two-year asset-backed notes secured by a pool of its unsecured personal installment loans.
The offering included four categories of fixed rate notes: Class A, Class B, Class C and Class D. DBRS, Inc. rated all categories of notes, assigning AA (low) ratings, respectively. (sf), A (low) (sf), BBB (low) (sf) and BB (high) (sf). Kroll Bond Rating Agency, LLC has rated Class A and Class B notes, assigning ratings of A (sf) and BBB (sf), respectively. The Notes were placed with a diverse mix of institutional investors in a private offering in accordance with Rule 144A under the Securities Act of 1933, as amended. The price of the Notes was subject to a weighted average fixed interest rate of 1.79% per annum. Goldman Sachs & Co. LLC acted as senior bookrunner with Jefferies LLC, Morgan Stanley & Co. LLC and Natixis Securities Americas LLC as joint bookkeepers.
Our securitization has been oversubscribed on several occasions, demonstrating investor confidence in the high quality of our loans and operations, said Jonathan Coblentz, CFO of Oportun. The transaction was our largest bond issue and lowest cost of funding to date and gives us the flexibility of capital necessary to support our growth in 2021 and beyond.
The strong response from investors validates the work we have done to develop a digital platform with AI-based models that is able to accurately and fairly mark a segment of the market that has been deemed too difficult for the market to assess. mainstream financial public, Raul said. Vazquez, CEO of Oportun. Our clients are hard working people without a credit score or who have been badly rated due to an insufficient credit history, and Oportun is on a mission to provide them with credit building products that allow them access to a better financial future.
Oportun carried out its first securitization in June 2013.
This press release does not constitute an offer to sell or the solicitation of an offer to buy such securities, and there will be no sale of such securities in any jurisdiction where such an offer, solicitation or sale would be illegal before registration or qualification under the securities laws of that jurisdiction.
Oportun (OPRT) is a financial services company that leverages its digital platform to deliver responsible consumer credit to hardworking people. Using AI-powered models that are based on 15 years of proprietary customer information and billions of unique data points, Oportun has stretched over $ 9.8 billion in affordable credit, providing customers with alternatives to payday loans and auto titles. In recognition of its responsibly designed products that help consumers build their credit history, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009. The company recently applied for a National Banking Charter to extend its services and make its products available in all 50 states. For more information, visit oportun.com.