Oportun Secures $187.5 Million Warehouse Funding Deal
Oportun Announces Major Funding for Future Growth
Oportun, a mission-driven financial services company, has recently finalized a significant warehouse facility worth $187.5 million. This strategic move aims to expand their capacity for responsible lending, facilitating further growth and aiding consumers in their financial journeys.
Details of the New Warehouse Facility
Under the new agreement, Natixis Corporate & Investment Banking has stepped in as the senior lender. Simultaneously, Neuberger Berman, representing various client funds, takes on the role of mezzanine lender. This arrangement lays the groundwork for a two-year revolving credit period that will bolster Oportun's financial resources.
Key Features of the Facility
The facility includes a total commitment of $187.5 million, designed to support Oportun's diverse lending activities. The secured and unsecured personal loan originations of Oportun will serve as collateral, reinforcing the company's reliability in the eyes of its investors.
Commitment to Mission and Growth
Paul Appleton, the Interim Chief Financial Officer of Oportun, emphasized the importance of this warehouse facility. "This new warehouse facility materially increases Oportun’s warehouse capacity with a diversified group of lenders," Appleton stated. He believes that with the added support from both Natixis and Neuberger Berman, Oportun is well-positioned for responsible growth in the coming years.
Diverse Capital Sources
The company showcases its commitment to a variety of capital sources, which include committed warehouse facilities, asset-backed securitizations, corporate-level debt financing, and whole loan sales. This strategic diversity empowers Oportun to adapt and thrive in the ever-changing financial landscape.
About Oportun and Its Services
Oportun (Nasdaq: OPRT) has refined its offerings to meet the financial goals of its members. Providing intelligent borrowing, savings, and budgeting solutions, Oportun enables individuals to build a better financial future. To date, Oportun has provided over $19.7 billion in responsible credit, significantly reducing interest and fees for its members by more than $2.4 billion, translating to savings of approximately $1,800 yearly.
Insights on Natixis Corporate & Investment Banking
Natixis Corporate & Investment Banking is a prominent global entity that supports corporations through advisory and financing services. Their commitment to sustainability drives their financing strategies towards achieving carbon neutrality by 2050.
Neuberger Berman's Profile
Neuberger Berman also plays a pivotal role in this partnership. Known for its employee-owned structure, the investment manager employs over 2,800 individuals in 26 countries and manages a vast array of investment portfolios, emphasizing active management and comprehensive research principles.
Conclusion
The recent warehouse facility marks a significant milestone in Oportun's ongoing journey towards fostering financial inclusivity. It positions the company to leverage support from well-established financial institutions, ensuring that they can continue providing valuable services to their clients.
Frequently Asked Questions
What is the total commitment of Oportun's new warehouse facility?
The total commitment of Oportun's new warehouse facility is $187.5 million.
Who are the key lenders involved in the facility?
Natixis Corporate & Investment Banking serves as the senior lender, while Neuberger Berman is the mezzanine lender.
How does this facility support Oportun's growth?
This facility enhances Oportun's capacity for responsible lending and allows them to diversify their sources of capital.
What are Oportun's core financial services?
Oportun provides intelligent borrowing, savings, and budgeting capabilities to empower its members in achieving their financial goals.
What impact has Oportun had since its inception?
Since its inception, Oportun has disbursed over $19.7 billion in credit and helped its members save approximately $2.4 billion in interest and fees.
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