Inaugural securitization rated through 95% of pool balance with blended note yield of 4.05%
KENNESAW, Ga.–(BUSINESS WIRE)–LendingPoint, the company revolutionizing and democratizing commerce, announced today that it closed its inaugural securitization of consumer loans. LendingPoint Receivables Trust 2019-1 (“LDPT 2019-1”) issued $177.85 million of notes backed by a pool of $187.22 million of direct-to-consumer loans originated on the LendingPoint platform.
Guggenheim Securities acted as the sole structuring advisor and sole book-running manager. All collateral contributed to the transaction had been held on LendingPoint’s balance sheet and, as the sponsor of the transaction, LendingPoint served as the risk retention sponsor.
“We are very pleased that our first securitization received such an enthusiastic response from the ABS market,” said Tom Burnside, CEO of LendingPoint. “The strong rating report, the efficient deal structure, and the attractive pricing all validate our decision to focus first on credit as the initial step on our mission to revolutionize and democratize commerce. As we continue to expand our presence in the point of sale market, as well as grow our online, direct-to-consumer lending program, we intend to return frequently to the ABS markets with loans arising from both origination channels. Our unique focus on excellent credit fundamentals was reflected in the execution of 2019-1. Our journey to revolutionize commerce will continue to be focused on credit excellence, phenomenal customer experience, rapid growth, and continued profitability.”
The LendingPoint Receivables Trust securitization was rated by Kroll Bond Rating Agency, Inc. and includes $117.76 million of Class A notes rated “A-“, $24.74 million of Class B notes rated “BBB-“, $23.68 million of Class C notes rated “BB-” and $10.67 million of Class D notes rated “B-.” The notes priced at a blended yield of 4.05% per annum and provided for a 95% advance rate. The transaction has a 5% overcollateralization Deposit and a 5% overcollateralization Target. The risk adjusted yield of the receivables securing the notes is expected to be 13.14% per annum.
“For an inaugural ABS deal, the execution of LDPT 2019-1 was nothing short of amazing,” according to Luke Graham, a veteran of the ABS and structured finance markets and a LendingPoint advisor. “The quality of the note buyers, the blended note rate, the overcollateralization target and the adjusted yield are all extraordinary and seem to signal that LendingPoint’s plan to issue periodic securitizations will be welcomed in the markets.”
Since making its first loan in 2015, the LendingPoint platform has helped fund more than $1.4 billion of personal loans to more than 125,000 borrowers nationwide. To date, the company has raised $190 million in capital and continues to expand its product lines and distribution, now offering its Point of Sale financing program through thousands of merchants and service providers to help them close more sales.
LendingPoint is on a mission to revolutionize and democratize commerce. Beginning with using data and technology to provide credit to underserved NearPrime consumers online, then expanding to serve virtually all customers with point of sale financing, LendingPoint seeks to accelerate commerce and help people live better financial lives. Its award-winning leadership team brings unmatched experience in FinTech and credit. In August 2019, LendingPoint was named #17 on the Inc. 5000 list of the fastest growing companies in the U.S. LendingPoint is a privately-held company with headquarters in Kennesaw, Ga. LendingPoint originates loans directly and originates on behalf of FinWise Bank, a Utah-chartered bank, Member FDIC and First Electronic Bank, a Utah-chartered bank, Member FDIC. For more information, visit https://www.lendingpoint.com.