Open Lending Corporation Announces Pricing of Upsized Secondary Offering

Rhea-AI Summary

Open Lending Corporation (Nasdaq: LPRO) has announced the pricing of a secondary public offering of 9.5 million shares at $28.00 per share, up from 8 million. The offering is solely by existing stockholders, including Nebula Holdings and certain executives. Open Lending will not receive any proceeds. A 30-day underwriter option for an additional 1.425 million shares is also available. Following this, Open Lending will repurchase shares worth $37.5 million. The offering is expected to close on December 14, 2020, pending customary conditions.

Positive

• None.

Negative

• No proceeds will benefit Open Lending; all proceeds go to selling stockholders.
• Share repurchase may indicate potential dilution concerns for existing shareholders.

AUSTIN, Texas, Dec. 09, 2020 (GLOBE NEWSWIRE) -- Open Lending Corporation, (“Open Lending”) (Nasdaq: LPRO), a leading provider of lending enablement and risk analytics to credit unions, regional banks and captive finance companies of Original Equipment Manufacturers, announced today the pricing of a secondary public offering of 9,500,000 shares of its common stock at a public offering price of $28.00 per share. The offering was upsized from the previously announced offering size of 8,000,000 shares. All shares are being sold by existing stockholders, including Nebula Holdings, LLC., a True Wind Capital, L.P. managed entity, Bregal Sagemount and certain executive officers of Open Lending. The selling stockholders have also granted the underwriters a 30-day option to purchase up to 1,425,000 additional shares of common stock. Open Lending is not selling any shares and will not receive any of the proceeds of the offering. The offering is expected to close on December 14, 2020, subject to customary closing conditions.

Pursuant to a Stock Repurchase Agreement, dated as of December 7, 2020, between Open Lending and the selling stockholders, Open Lending will repurchase from the selling stockholders an aggregate number of shares of Open Lending’s common stock equal to $37.5 million at the same per share price paid by the underwriters to the selling stockholders in the offering. The share repurchase is conditioned on the closing of the offering, which is expected to occur on December 14, 2020, subject to customary closing conditions.

Goldman Sachs & Co. LLC, Deutsche Bank Securities and Morgan Stanley are acting as lead book-running managers for the offering. Jefferies, Raymond James and William Blair are also acting as book-running managers. Canaccord Genuity, D.A. Davidson & Co., JMP, Needham & Company, Stephens Inc. and Northland Capital Markets are acting as co-managers.

A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission on December 9, 2020. The offering of these securities is being made only by means of a prospectus. When available, a copy of the final prospectus relating to the offering may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, New York 10282, by email at prospectus-ny@ny.email.gs.com or by telephone at (866) 471-2526; or Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, New York 10005, by email at prospectus.CPDG@db.com or by telephone at (800) 503-4611; or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities described above, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of the Company. These forward looking statements are subject to a number of risks and uncertainties, including those factors discussed in the Company’s filings with the SEC, including those under the header “Risk Factors” in the Registration Statement on Form S-1 filed with the SEC on December 7, 2020, as amended. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that they currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect the Company’s expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

About Open Lending Corporation

Open Lending, through its flagship product, Lenders Protection, offers loan analytics, risk-based pricing, risk modeling and default insurance, ensuring profitable auto loan portfolios for financial institutions throughout the United States. 

Investor Contact:
ICR for Open Lending Investors
openlending@icrinc.com

FAQ

What is the price of the secondary public offering for LPRO?

The secondary public offering for Open Lending Corporation (LPRO) is priced at $28.00 per share.

How many shares are being offered in the LPRO secondary public offering?

A total of 9.5 million shares are being offered in the LPRO secondary public offering.

When is the expected closing date for the LPRO offering?

The expected closing date for the Open Lending (LPRO) offering is December 14, 2020.

Who are the major selling stockholders in the LPRO offering?

Major selling stockholders include Nebula Holdings, True Wind Capital, Bregal Sagemount, and certain executive officers of Open Lending.

Will Open Lending receive any proceeds from the secondary offering?

No, Open Lending will not receive any proceeds from the secondary offering as all shares are sold by existing stockholders.