Upstart Holdings, Inc. - UPST STOCK NEWS

Upstart announced that DR Bank is implementing its small-dollar loan product to help customers with short-term financial needs. The loans range from $250 to $2,500 with terms between 3 to 18 months at or below 36% APR. This initiative aims to provide a faster, simpler, and more affordable alternative to traditional high-cost credit options. DR Bank's partnership with Upstart leverages AI technology to expand credit access while helping lenders operate these programs profitably at scale, addressing economic and regulatory constraints that have historically small-dollar loan programs.

UNCLE Credit Union, serving over 38,000 members in Northern California, has partnered with Upstart (NASDAQ: UPST) to provide personal loans through the Upstart Referral Network. The partnership, which began in July 2024, enables qualified loan applicants on Upstart.com to receive tailored offers and transition to an UNCLE-branded experience for completing their membership and loan process. The collaboration aims to expand inclusive lending and membership growth across Alameda, Contra Costa, San Joaquin, and Stanislaus counties through an all-digital lending experience.

Upstart Holdings (NASDAQ: UPST) has priced $425 million of 1.00% Convertible Senior Notes due 2030 in a private offering to qualified institutional buyers. The notes will bear 1.00% annual interest, payable semi-annually, and mature on November 15, 2030. The initial conversion rate is 10.8702 shares per $1,000 principal amount, equivalent to approximately $91.99 per share. The company expects net proceeds of about $414.8 million, which will be used for general corporate purposes, including potential debt repayment. An additional option for $75 million in notes was granted to initial purchasers.

Upstart Holdings (NASDAQ: UPST) has announced plans to offer $425 million in Convertible Senior Notes due 2030 through a private offering to qualified institutional buyers. The company may grant initial purchasers an option to buy an additional $75 million in notes. The notes will be senior, unsecured obligations with semi-annual interest payments, convertible into cash, Upstart common stock, or a combination at the company's discretion. The proceeds will be used for general corporate purposes, including potential debt repayment. Specific terms, including interest rate and conversion rate, will be determined during pricing.

Upstart Holdings, Inc. (NASDAQ: UPST), leading AI lending marketplace, announced its third-quarter 2024 results, ending September 30, 2024. Revenue reached $162 million, a 20% increase YoY and 27% sequentially. Total fee revenue was $168 million, up 14% YoY and 28% sequentially. 188,149 loans were originated, totaling $1.6 billion, up 30% YoY and 43% sequentially. Conversion rate improved to 16.3% from 9.5% YoY. Despite a GAAP net loss of $6.8 million, an improvement from the $40.3 million loss YoY, adjusted net loss was $5.3 million, down from $3.9 million YoY. Adjusted EBITDA was $1.4 million, down from $2.3 million YoY. For Q4 2024, Upstart projects revenue of $180 million and adjusted EBITDA of $5 million.

Upstart has launched T-Prime, a new lending program within its Referral Network targeting affluent 'super prime' borrowers with credit scores above 720. Fourteen lenders have already joined the initiative, which aims to help banks and credit unions leverage competitive funding costs to serve this demographic. The program combines competitive rates with instant, automated approvals, with approximately 90% of Upstart-powered loans in 2024 approved instantly without document uploads. T-Prime loan offers are currently available on Upstart.com and will soon expand to partner sites.

KBRA has assigned preliminary ratings to three classes of notes issued by Upstart Securitization Trust 2024-1, a $208.001 million consumer loan ABS backed by unsecured consumer loans. The preliminary ratings reflect initial credit enhancement levels of 45.50% for Class A notes, 35.50% for Class B notes, and 20.50% for Class C notes. This marks Upstart's 44th ABS securitization of unsecured consumer loans originated through its online platform. Credit enhancement includes overcollateralization, excess spread, a non-declining cash reserve account, and subordination.

WECU, a Washington-based credit union with over 160,000 members and $2.7 billion in assets, has partnered with Upstart (NASDAQ: UPST) to provide personal loans to members. Through the Upstart Referral Network, qualified personal loan applicants on Upstart.com who meet WECU's credit policies will receive tailored offers and transition to a WECU-branded experience. The partnership, which began in December 2023, aims to expand access to fair loans while improving members' financial well-being.

Upstart, the AI-driven lending marketplace, has announced a significant partnership with Blue Owl Capital. Blue Owl's Alternative Credit strategy has committed to purchasing up to $2 billion of consumer loans from Upstart's platform over an 18-month period. This agreement includes an initial acquisition of a $290 million personal loan portfolio, which was completed in September.

The collaboration aims to enhance the efficiency of consumer lending for both borrowers and lenders. Blue Owl's data science capabilities and experience in consumer finance will be leveraged in this partnership. ATLAS SP Partners, majority-owned by Apollo funds, will provide debt financing for the loan purchases.

This partnership represents one of Upstart's largest purchase commitments to date and is expected to accelerate their efforts in expanding access to affordable credit.