Oportun Prices $400 Million in Asset-Backed Securities

Rhea-AI Summary

Oportun (Nasdaq: OPRT) has priced $400 million of Series 2022-2 fixed rate asset-backed notes in a private securitization secured by a pool of installment loans. The transaction reflects investor confidence in Oportun’s financial strength and A.I. underwriting. The offering includes Class A, B, C, and D notes rated by DBRS, with a weighted average yield of 7.996% and interest rate of 7.77%. The closing is expected on July 22, 2022, subject to customary conditions. Oportun aims to leverage this funding for responsible growth in the asset-backed and debt capital markets.

Positive

• Investor confidence remains strong as indicated by the successful pricing of $400 million in asset-backed notes.
• The transaction features a competitive weighted average yield of 7.996%, signaling demand for Oportun's financial products.

Negative

• None.

SAN CARLOS, Calif., July 15, 2022 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven fintech and digital banking platform, today announced that it has priced $400 million of Series 2022-2 fixed rate asset-backed notes (the “Notes”) in a private asset-backed securitization transaction secured by a pool of unsecured and secured installment loans.

“With this transaction priced, investors have reiterated their confidence in Oportun’s financial strength and A.I.-driven underwriting throughout various cycles. We intend to continue to fund our business for responsible growth, and are actively assessing the asset-backed and other debt capital markets,” said Jonathan Coblentz, Chief Financial and Administrative Officer at Oportun.

The offering included four classes of the Notes: Class A, Class B, Class C and Class D (the “Bonds”). DBRS, Inc. rated all classes of the Notes, assigning ratings of AA (low) (sf), A (low) (sf), BBB (low) (sf) and BB (sf), respectively. The Class A, Class B, Class C and Class D 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 yield of 7.996% per annum and weighted average interest rate of 7.77%. Goldman Sachs & Co. LLC acted as the lead book runner with Jefferies and J.P. Morgan Securities LLC as joint book-runners.

The transaction is scheduled to close on July 22, 2022, subject to customary closing conditions.

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.

Forward-Looking Statements
This press release contains forward-looking statements regarding Oportun’s future business expectations which involve risks and uncertainties, including, but not limited to, the expected completion of the transaction and potential funding initiatives, including potential transactions in the asset-backed and other debt capital markets. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include those risks described in Oportun's filings with the Securities and Exchange Commission, including Oportun's most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements contained herein are made as of the date hereof. Oportun undertakes no duty to update this information unless required by law. You should not place undue reliance on any forward-looking statements contained in this press release.

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 is the significance of Oportun's $400 million asset-backed notes offering?

The $400 million offering indicates strong investor confidence in Oportun's financial stability and A.I.-driven underwriting, aiding future growth.

What are the expected yields and interest rates for Oportun's asset-backed notes?

The asset-backed notes have a weighted average yield of 7.996% and a weighted average interest rate of 7.77%.

When is the closing date for Oportun's asset-backed notes transaction?

The transaction is scheduled to close on July 22, 2022, subject to customary closing conditions.

What ratings did DBRS assign to Oportun's asset-backed notes?

DBRS rated the notes as AA (low) for Class A, A (low) for Class B, BBB (low) for Class C, and BB for Class D.

How does Oportun plan to use the funds from the asset-backed notes?

Oportun intends to use the funds to support responsible growth and assess opportunities in the asset-backed and other debt capital markets.