Oportun sells $228 million in loans through depreciating asset-backed securitization
SAN CARLOS, Calif., April 04, 2022 (GLOBE NEWSWIRE) — Porto OPRT, a mission-driven financial technology and digital banking platform, today announced the sale of $228 million in loans through the issuance of amortizing asset-backed notes secured by a pool of its personal installment loans. unsecured and secured. Oportun and funds managed by Ellington Management Group both provided collateral and co-sponsored the transaction, which totaled $400 million in asset-backed notes issued. The Notes were priced with a weighted average fixed interest rate of 3.83% per annum. Oportun also sold its portion of the residual interest in the pool. By selling both its notes and residual interest, Oportun completed a loan sale at an aggregate yield of 6.75% on its share of the transaction.
“We are delighted with this transaction as the structure allowed us to sell our loans at an attractive price while generating capital and reducing our credit exposure,” said Jonathan Coblentz, Chief Financial Officer and Chief Administrative Officer of Oportun.
The offering included three classes of fixed rate notes: Class A, Class B and Class C Notes. DBRS, Inc. rated all classes of Notes with ratings of AA (low) (fs), A (low) (fs) and BBB (low) (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. Goldman Sachs & Co. LLC acted as sole bookrunner.
Timely OPRT is an AI-powered digital banking platform that seeks to make financial health effortless for everyone. Driven by a mission to provide inclusive and affordable financial services, Oportun helps its nearly 1.5 million hardworking members meet their daily borrowing, saving, banking and investing needs. Since its inception, Oportun has provided over $12 billion in responsible and affordable credit, saved members over $2 billion in interest and fees, and automatically helped members set aside over $7.2 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.