Oportun Completes Sale of Subordinate Asset-Backed Securities

Rhea-AI Summary

Oportun (Nasdaq: OPRT) announced the completion of sales of Class C and D bonds from its Series 2018-B and 2019-A asset-backed securitizations, closing on October 30, 2020. This transaction garnered $39.8 million in net proceeds, enhancing Oportun's capital to expand its customer base. CFO Jonathan Coblentz noted strong market demand for their bonds as a sign of confidence in their business model. Since 2005, Oportun has offered over $9 billion in loans, primarily to low- and moderate-income communities, saving customers over $1.7 billion in interest compared to other options.

Positive

• Completed bond sales raised $39.8 million in net proceeds.
• Strong market demand indicates confidence in Oportun's business model.
• Ability to use proceeds to grow customer base.

Negative

• None.

SAN CARLOS, Calif., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial institution, today announced that it completed the sale of the Class D bonds previously retained as part of its Series 2018-B asset-backed securitization and the Class C and Class D bonds previously retained as part of Series 2019-A asset-backed securitization. The Class C and Class D bonds were placed with a global asset manager. Jefferies LLC served as placement agent for the transaction.

Oportun reported that the deal closed on October 30, 2020 and provided the company with $39.8 million of net proceeds after fees and transaction expenses.

“Given the strong trading levels of our asset-backed bonds, we decided to sell the Class C and D tranches we had retained from prior securitizations to provide Oportun with additional capital to grow our customer base and fulfill our mission,” said Jonathan Coblentz, Chief Financial Officer at Oportun. “This transaction is a strong indicator of market demand for our subordinate bonds and it reflects confidence in our collateral performance and our business model.”

Established in 2005, Oportun has extended more than $9 billion in affordable loans, primarily to people living in low- and moderate-income (LMI) communities. By originating more than 3.8 million loans, Oportun has saved its customers more than $1.7 billion in interest and fees when compared to the other options available to its LMI customers.

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 a mission-driven Community Development Financial Institution (CDFI). Oportun provides inclusive, affordable financial services powered by a deep, data-driven understanding of its customers and advanced proprietary technology. By lending money to hardworking, low- and moderate-income individuals, Oportun helps them move forward in their lives, demonstrate their creditworthiness, and establish the credit history they need to access new opportunities. Oportun serves customers in English and Spanish, online and over the phone in 32 states, and in-person at more than 330 retail locations across 9 of those states.

Investor Contact
Nils Erdmann
650-810-9074
ir@oportun.com

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

FAQ

What was Oportun's recent financial transaction involving bonds?

Oportun completed sales of Class C and D bonds from its Series 2018-B and 2019-A asset-backed securitizations, resulting in $39.8 million in net proceeds.

When did the bond sales transaction close for Oportun?

The transaction closed on October 30, 2020.

How much capital did Oportun raise from its bond sales?

Oportun raised $39.8 million in net proceeds from the bond sales.

What has been the impact of Oportun's loans on low-income customers?

Oportun has saved low- and moderate-income customers more than $1.7 billion in interest and fees by providing affordable loans.

What is the market demand for Oportun's bonds?

The strong trading levels of Oportun's asset-backed bonds indicate a robust market demand and confidence in their collateral performance.