Oportun Secures Over $538 Million in Asset-Backed Securitization
Oportun Achieves Milestone with $538 Million Securitization
Oportun, a mission-driven financial services company, recently completed a significant financial transaction involving approximately $538 million in asset-backed notes. This transaction is part of Oportun's ongoing commitment to providing responsible credit options to its members.
Strong Financial Performance
The asset-backed securitization involved two-year revolving fixed-rate notes, secured by both unsecured and secured installment loans. The offering was well received, showcasing the robustness of Oportun's financial platform and its ability to deliver attractive investment opportunities to its stakeholders.
Impressive Ratings and Investor Confidence
Fitch Ratings assigned impressive ratings to the various classes of notes issued during this transaction, including AAA, AA-, A-, BBB-, and BB-. This reflects the trust investors have in Oportun's operations and financial health. The company noted a substantial demand for its asset-backed securities, highlighting the expanding interest from new investors.
Enhanced Financial Stability
In addition to the securitization, Oportun has proactively managed its corporate debt, paying down $10 million toward its higher-cost financing. This is a strategic move to strengthen its balance sheet and enhance its financial stability, which is crucial in a competitive financial landscape.
Innovative Offerings and Future Directions
With a weighted average coupon of 5.23% and an average yield of 5.29%, the securitization has positioned Oportun favorably among its peers. The company’s commitment to lowering funding costs directly translates to more accessible credit options for qualified borrowers, fostering a culture of affordable lending.
Commitment to Members
Oportun’s mission centers on empowering its members through financial literacy, responsible borrowing, and savings initiatives. Since its inception, the company has facilitated over $20.8 billion in credit, effectively saving its members significant amounts in interest and fees, which further alleviates financial burdens.
Strategic Insights from Leadership
Paul Appleton, Interim Chief Financial Officer at Oportun, emphasized the company's strong fundamentals and operational efficiency. The successful pricing of the new transaction illustrates Oportun’s effective strategies and the continued investor confidence, which is integral for future growth.
Corporate Overview
Oportun continues to redefine the financial services landscape by focusing on empowering its members holistically. The firm is committed to ensuring that financial services are within reach of those who need it most, enabling them to achieve their financial goals.
Contact Information for Investors and Media
Oportun encourages communication with its stakeholders, maintaining transparency and responsiveness. Investors are welcome to reach out to Dorian Hare at (650) 590-4323 or via email at ir@oportun.com for further inquiries. For media-related questions, please contact Michael Azzano at (415) 596-1978 or email michael@cosmo-pr.com.
Frequently Asked Questions
What is the recent securitization amount completed by Oportun?
Oportun recently secured approximately $538 million through a two-year revolving fixed-rate asset-backed securitization.
What ratings did Fitch assign to the new asset-backed notes?
Fitch assigned ratings of AAA, AA-, A-, BBB-, and BB- to the various classes of asset-backed notes issued by Oportun.
How does Oportun support its members' financial goals?
Oportun empowers its members through financial education, responsible lending practices, and helping them save money on interest and fees.
Who can investors contact for more information?
Investors can reach out to Dorian Hare at (650) 590-4323 or via email at ir@oportun.com.
What is Oportun’s commitment towards financial services?
Oportun is committed to making financial services accessible to its members, helping them achieve affordable credit and a better financial future.
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