Oportun Completes $500M Asset-Backed Oversubscription

SAN CARLOS, Calif., May 10, 2021 (GLOBE NEWSWIRE) — Oportun Financial Corporation (“Oportun”), a financial services company leveraging its digital platform to provide hard workers with responsible, affordable, and credit-generating alternatives to payday loans and auto-securities, today announced the issuance of $500 million of three-year asset-backed notes secured by a pool of unsecured and secured personal installment loans.

The offering consisted of four classes of fixed rate notes: Class A, Class B, Class C and Class D Notes. DBRS, Inc. has rated all classes of Notes, assigning ratings of AA (low ) (fs), A (low) (fs), BBB (low) (fs) and BB (high) (fs), respectively. Kroll Bond Rating Agency, LLC has rated the Class A and Class B Notes, assigning A (sf) and BBB (sf) ratings respectively. The Notes were placed with a diverse mix of institutional investors in a private offering pursuant to Rule 144A of the Securities Act of 1933, as amended. The Notes were priced with a weighted average fixed interest rate of 2.05% per annum. Jefferies LLC acted as lead bookrunner with Goldman Sachs & Co. LLC and Natixis Securities Americas LLC as joint bookrunners.

“This was our largest bond issue to date and the first ABS operation where secured personal loans are included as eligible collateral. The transaction also provides us with improved flexibility and financing to support our growth in 2021 and beyond,” said Jonathan Coblentz, Chief Financial Officer at Oportun. “This securitization was oversubscribed multiple times and demonstrates investor confidence in the high quality of our loans and our business.”

“Oportun serves hard-working individuals with little or no credit history through an AI-powered digital platform that allows us to accurately and fairly assess risk for a large segment of the United States which remains underserved by the financial mainstream,” said Raul Vazquez, CEO of Oportun. “We are proud of the work we do and appreciate the trust of our bondholders. Together, we can make a positive and lasting difference in the financial future of millions of Americans who need access to responsible and affordable credit.

Oportun issued its first securitization in June 2013.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, 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 the securities laws of that jurisdiction.

About Opportun
Oportun (Nasdaq: OPRT) is a financial services company that leverages its digital platform to provide responsible consumer credit to hard-working people. Using AI-powered models that draw on 15 years of proprietary customer insights and billions of unique data points, Oportun has granted over 4 million loans and over $10 billion in credit affordable, offering its customers alternatives to payday loans and auto titles. In recognition of its responsibly designed products that help consumers build their credit history, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.

Contact Investor
Nils Erdman
650-810-9074
[email protected]

Media Contact
Georges González
650-769-0441
[email protected]

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