Oportun concludes $ 500 million oversubscribed asset-backed
SAN CARLOS, Calif., May 10, 2021 (GLOBE NEWSWIRE) – Oportun Financial Corporation (âOportunâ), a financial services company that leverages its digital platform to provide hardworking workers with responsible, affordable and credit-generating alternatives to payday and auto title loans, today announced the issuance of $ 500 million in three-year asset-backed notes secured by a pool of unsecured and secured personal installment loans.
The offering included four categories of fixed rate notes: Class A, Class B, Class C and Class D. DBRS, Inc. rated all categories of notes, assigning them AA (low ) (sf), A (low) (sf), BBB (low) (sf) and BB (high) (sf), respectively. Kroll Bond Rating Agency, LLC has rated Class A and Class B Notes, assigning them A (sf) and BBB (sf) ratings, respectively. The Notes were placed with a diverse pool of institutional investors in a private offering in accordance with Rule 144A of the Securities Act of 1933, as amended. The Notes have been valued at a weighted average fixed interest rate of 2.05% per annum. Jefferies LLC acted as Senior Bookrunner with Goldman Sachs & Co. LLC and Natixis Securities Americas LLC as Associate Bookrunner.
âThis is our largest bond issue to date and the first ABS transaction in which secured personal loans are included as eligible collateral. The transaction also gives us improved flexibility and financing to support our growth in 2021 and beyond, âsaid Jonathan Coblentz, Chief Financial Officer of Oportun. âThis securitization has been oversubscribed several times and demonstrates investor confidence in the high quality of our loans and our business. “
âOportun serves hardworking people with little to no credit history through an AI-powered digital platform that allows us to accurately and fairly assess risks for much of the United States that remains underserved by the mainstream financials, âsaid Raul Vazquez, CEO of Oportun. âWe are proud of the work we do and appreciate the confidence of our bondholders. Together, we can make a positive and lasting difference in the financial future of the 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 such securities, and there will be no sale of such securities in any jurisdiction in which such an offer, solicitation or sale would be illegal. prior to registration or qualification under the securities laws of that jurisdiction.
Oportun (Nasdaq: OPRT) is a financial services company that leverages its digital platform to deliver responsible consumer credit to hardworking people. Using AI-powered models that are based on 15 years of proprietary customer information and billions of unique data points, Oportun has made over 4 million loans and over $ 10 billion in affordable credit, providing 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.