Octane Completes $375M Asset-Backed Securitization, Moving to Initial Target Issuance of $275M

AAA rating is testament to the company’s consistent underwriting and business performance

NEW YORK, May 12, 2022 /PRNewswire/ — Octane® (Octane Lending Inc.®), the fintech that is revolutionizing the shopping experience for large recreational purchases, announces the closure of a $375 million securitization (“OCTL 2022-1”) secured by its fixed rate powersports and outdoor power equipment loans. This transaction follows a period of sustained growth and marks the company’s fifth securitization since the launch of the program in December 2019.

OCTL 2022-1 issued one money market-eligible tranche, Class A-1 notes, and five longer-term fixed rate tranches, including Class A-2, B, C, D and E notes, all Kroll Bond Rating Agency (KBRA)* and Standard & Poor’s (S&P)** rated K1+(sf)/NR, AAA(sf)/AA(sf), AA(sf)/AA-(sf), A( sf)/ A(sf), BBB(sf)/BBB(sf) and BB+(sf)/BB+(sf), respectively pursuant to a private offer pursuant to Rule 144A of the Securities Act of 1933, as amended. Additionally, Octane was able to secure an increase in deal size from an initial target issuance of $275 million for $375 million in notes, making this issue Octane’s largest asset-backed securitization transaction to date. JP Morgan acted as lead bookrunner and structuring agent, with Credit Suisse and Truist Securities as joint bookrunners.

“The AAA rating and our ability to attract such outstanding institutional investment partners is a testament to the strength and resilience of our business, especially in today’s volatile market environment,” said Steven Fernand, Chief Financial Officer at Octane. “We are now even better positioned to continue our growth as we connect people to their passions and make shopping quick, easy and accessible.”

This show comes at a time of sustained success for the company. During the first months of 2022, Octane showed strong momentum in originations; significantly expanded its range of dealer partners; entered two new markets, tractors and trailers; and launched several new partnerships. The company closed positive 2021 GAAP net income.

This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration. or qualification under securities laws. of such jurisdiction.

*KBRA Assessments are subject to all terms and conditions set forth in the related report and on KBRA’s website, which you should review and understand, and may access here.

** S&P’s full ratings analysis, including all updates, for you to review and understand, is available at standardandpoors.com and can be viewed here.

About Octane:
Octane® provides access to instant financing to fuel your lifestyle. Octane dramatically simplifies and speeds up the transaction process for major recreational purchases such as motorcycles, ATVs and zero-turn lawn mowers by adding value at every step of the buying journey. Octane offers automated underwriting, innovative credit products and financing, through its in-house lender Roadrunner Financial, Inc.®. Octane reaches millions of enthusiasts through its editorial brands like bike world® and UTV driver® and helps consumers buy their favorite products by prequalifying them on reseller and OEM websites. Octane is revolutionizing lending in underserved verticals in markets that represent tens of billions of dollars in annual transactions.

Octane is a remote fintech company with desks in New York and dallas and over 500 employees. In August 2021octane number announced that he had lifted $52 million in Series D financing bring the valuation of the company to more $900 million with over $192 million of total equity raised to date. To visit www.octane.co.

contacts:
Media Relations: Shannon O’Hara
Director of Corporate Communications at Octane
[email protected]

Investor Relations: Kartik Kothari
SVP of Corporate Development and Investor Relations at Octane
[email protected]

SOURCEOctane

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