Oportun Completes $400 Million Asset-Backed Securitization

Rhea-AI Summary

Oportun (Nasdaq: OPRT) has successfully issued $400 million in two-year revolving asset-backed notes, supported by a pool of unsecured and secured installment loans. This offering features four classes of fixed-rate notes rated by DBRS, with Class A, B, and C attracting a weighted average yield of 5.68%. This transaction underscores Oportun's ability to secure growth capital in challenging markets, reflecting strong investor confidence in its A.I.-driven underwriting capabilities. The Class D bonds will be retained by Oportun, further supporting its existing financing facilities.

Positive

• Successfully issued $400 million in asset-backed notes, indicating strong market demand.
• Secured a weighted average yield of 5.68% for Class A, B, and C notes, demonstrating favorable pricing.
• Investor confidence highlighted by strong institutional interest, proving resilience in challenging market conditions.

Negative

• None.

SAN CARLOS, Calif., May 24, 2022 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven fintech and digital banking platform, today announced the issuance of $400 million of two-year revolving asset-backed notes secured by a pool of unsecured and secured installment loans.

The offering included four classes of fixed rate notes: Class A, Class B, Class C and Class D. DBRS, Inc. rated all classes of notes, assigning ratings of AA (low) (sf), A (low) (sf), BBB (low) (sf) and BB (high) (sf), respectively. The Class A, Class B and Class C bonds 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 Class D bonds will be retained by an affiliate of Oportun. The Class A, Class B and Class C bonds were priced with a weighted average yield of 5.68% per annum. Jefferies LLC acted as the lead book runner with Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as joint book-runners.

Oportun will pledge the Class D bonds and the residual cash flows to its existing financing facility provided by Jefferies.

“This transaction proves we are able to access growth capital even in challenging markets and demonstrates investor confidence in our A.I.-driven underwriting,” said Jonathan Coblentz, Chief Financial and Administrative Officer at Oportun.

This press release does not constitute an offer to sell or the solicitation of an offer to buy 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 an A.I.-powered digital banking platform that seeks to make financial health effortless for anyone. Driven by a mission to provide inclusive and affordable financial services, Oportun helps its nearly 1.7 million hardworking members meet their daily borrowing, savings, banking, and investing needs. Since inception, Oportun has provided more than $13 billion in responsible and affordable credit, saved its members more than $2.2 billion in interest and fees, and automatically helped members set aside more than $7.6 billion for rainy days and other needs. In recognition of its responsibly designed products, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.

Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com

Media Contact
Usher Lieberman
650-769-9414
usher.lieberman@oportun.com

FAQ

What was the purpose of Oportun's $400 million issuance?

The issuance was to secure growth capital through two-year revolving asset-backed notes backed by a pool of loans.

What ratings did DBRS assign to Oportun's new notes?

DBRS rated Class A as AA (low) (sf), Class B as A (low) (sf), Class C as BBB (low) (sf), and Class D as BB (high) (sf).

What is the weighted average yield for Oportun's notes?

The weighted average yield for Class A, B, and C notes is 5.68% per annum.

Who were the lead book runners for Oportun's note offering?

Jefferies LLC was the lead book runner, with Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC acting as joint book runners.

When was Oportun's press release regarding the notes issued?

The press release was issued on May 24, 2022.