Oportun Completes $375 Million Asset-backed Securitization
Oportun Financial Corporation announced the issuance of $375 million in two-year asset-backed notes secured by its unsecured personal installment loans. The offering received high ratings from DBRS and Kroll Bond Rating Agency, with a weighted average fixed interest rate of 1.79% per annum. This securitization was oversubscribed, reflecting strong investor confidence, and is the company's largest bond issuance to date. Oportun aims to provide affordable credit to those with limited credit histories, highlighting its innovative A.I.-driven digital platform.
- Oversubscription of securitization indicates strong investor confidence.
- Largest bond issuance to date provides significant capital flexibility.
- Lowest cost of funds achieved, enhancing financial condition.
- None.
SAN CARLOS, Calif., March 08, 2021 (GLOBE NEWSWIRE) -- Oportun Financial Corporation (“Oportun”), a financial services company that leverages its digital platform to provide hard working people with responsible, affordable, and credit-building alternatives to payday and auto-title loans, today announced the issuance of
The offering included four classes of fixed rate notes: Class A, Class B, Class C and Class D notes. DBRS, Inc. rated all classes of notes, assigning ratings of AA (low) (sf), A (low) (sf), BBB (low) (sf) and BB (high) (sf), respectively. Kroll Bond Rating Agency, LLC rated the Class A and Class B notes, assigning ratings of A (sf) and BBB (sf), respectively. The notes were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The notes were priced with a weighted average fixed interest rate of
“Our securitization was multiple-times oversubscribed, demonstrating investors’ confidence in the high quality of our loans and our business,” said Jonathan Coblentz, Chief Financial Officer at Oportun. “The deal was our largest bond issuance and our lowest cost of funds, to date, and provides us with the capital flexibility to support our growth in 2021 and beyond.”
“The strong investor response validates the work we have done to develop a digital platform with A.I.-driven models that is able to accurately and fairly score a segment of the market that has been deemed too hard to risk-score by the financial mainstream,” said Raul Vazquez, Oportun CEO. “Our customers are hard-working people with no credit score or who have been mis-scored because of insufficient credit history, and Oportun is in the business of providing them with credit-building products that are a pathway to accessing a better financial future.”
Oportun issued its first securitization in June 2013.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Oportun
Oportun (Nasdaq: OPRT) is a financial services company that leverages its digital platform to provide responsible consumer credit to hardworking people. Using A.I.-driven models that are built on 15 years of proprietary customer insights and billions of unique data points, Oportun has extended more than
Investor Contact
Nils Erdmann
650-810-9074
ir@oportun.com
Media Contact
Usher Lieberman
650-769-9414
usher.lieberman@oportun.com
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