Oportun Achieves Remarkable $441 Million Securitization Success
Oportun's $441 Million Asset Backed Securitization Triumph
Oportun, a dedicated financial services provider, has successfully completed a significant asset-backed securitization transaction. The company issued $441 million of two-year revolving fixed rate asset-backed notes, showcasing its capacity to access low-cost funding consistently.
Key Features of the Transaction
This securitization involved a pool of unsecured and secured installment loans, with five distinct classes of fixed rate notes: Class A, Class B, Class C, Class D, and Class E. These classes were rated by Fitch, with the most senior bonds receiving an impressive AAA rating. These ratings demonstrate investors' confidence in Oportun’s financial health and stability.
Details on Note Classes
In the offering, the Class A notes were priced with a favorable 4.53% per annum coupon. In contrast, the Class B notes carried a coupon of 5.31% per annum, and the Class C notes were set at 5.80% per annum. The Class D notes had a higher coupon of 6.97%, while the Class E notes bore a coupon of 10.82% per annum, reflecting the different risk profiles of each class.
Feedback from Leadership
Paul Appleton, the Interim Chief Financial Officer at Oportun, expressed enthusiasm over the deal, noting, "This was Oportun’s fourth ABS transaction of the year and our third consecutive deal with a AAA rating. The 5.77% yield on this bond issuance reflects robust investor demand and our ability to consistently raise low-cost sources of capital to fund our operations." His insights underline the strong market confidence in Oportun amidst fluctuating economic conditions.
Impact on Oportun's Future
This successful securitization places Oportun in a solid position, enhancing its funding avenues while delivering significant benefits to its members. With over $20.3 billion in responsibly managed loans since its inception, Oportun has managed to save its members more than $2.4 billion in interest and fees, empowering them to achieve their financial objectives.
The Road Ahead
As market conditions evolve, Oportun remains focused on blending technology with consumer-friendly financial solutions. By continually investing in intelligent borrowing, savings, and budgeting tools, Oportun is committed to aiding its members in navigating their financial journeys effectively. The company's dedication to providing affordable credit solutions remains pivotal as it advances its mission.
Frequently Asked Questions
What was the amount raised in Oportun's recent securitization?
Oportun raised $441 million through its recent asset-backed securitization.
How did Fitch rate the classes of notes issued by Oportun?
Fitch assigned the senior bonds an AAA rating, while the other classes received ratings ranging from AA- to BB-.
What is the purpose of the asset-backed notes?
The asset-backed notes help Oportun secure low-cost capital to fund its operations and provide loans to members.
How does Oportun support its members financially?
Oportun assists members through affordable credit products, and intelligent borrowing and budgeting capabilities to promote financial wellness.
Who can I contact for investor inquiries about Oportun?
Dorian Hare at Oportun is the designated contact for investor inquiries, reachable at (650) 590-4323.
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