Oportun Completes $ 500 Million Asset-Backed Securitization

By Edlyn Cardoza

Timely, a AI-driven FinTech recently announced the issuance of $ 500 million of three-year asset-backed notes secured by a pool of its 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 2.48% per annum. Goldman Sachs & Co. LLC acted as Senior Bookrunner with Jefferies LLC and JP Morgan Securities as Joint Bookrunner.

“Our securitizations continue to attract the interest and confidence of disproportionate investors, as evidenced by the scale and low costs achieved by this latest transaction,” said Jonathan coblentz, CFO at Oportun. “The strong execution of this deal reflects the quality and consistency of our AI-driven credit underwriting and the hardworking nature of our clients, who continue to reward our investors by demonstrating their creditworthiness on a large scale. “

Oportun issued its first securitization in June 2013. Oportun is a financial services company that leverages its digital platform to deliver responsible consumer credit to hardworking people. Using AI-powered models that leverage 15 years of proprietary customer information and billions of unique data points, Oportun has provided more than $ 10.5 billion in affordable credit, providing customers with 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.

Recently, IBS Intelligence reported that Opportun, an AI-driven FinTech that provides hardworking people with responsible, affordable, and credit alternatives to payday loans and auto securities, announced the expansion of its business of loan as a service (LaaS) with the addition of its new strategic partner, Barri Financial Group (Barri).