SAN CARLOS, CA – August 1, 2019 – Oportun Financial Corporation (“Oportun”), a high-growth, mission-driven Community Development Financial Institution (“CDFI”) providing inclusive, affordable financial services powered by a deep, data-driven understanding of its customers and advanced proprietary technology, today announced the issuance of $279.4 million of three-year asset-backed bonds secured by a pool of its personal installment loans.
The offering included four classes of fixed rate notes: Class A, Class B, Class C and Class D bonds which received ratings of A+ (sf), BBB+ (sf), BB (sf) and B(sf), respectively, from Kroll Bond Rating Agency. The Class A and Class B bonds were placed with a diversified mix of institutional investors in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The Class C and Class D bonds will be retained by an affiliate of Oportun. The Class A and Class B bonds were priced with a weighted average fixed interest rate of 3.25% per annum. Morgan Stanley & Co. LLC acted as lead book runner with Goldman Sachs & Co. LLC and Jefferies LLC as joint book-runners, and Natixis Securities Americas LLC as co-manager.
“This over-subscribed securitization demonstrates the confidence our investors have in our business.” said Oportun Chief Financial Officer Jonathan Coblentz. “It is also our first securitization to be pre-funded, which gives us the capital flexibility we need today by investing in loans we will make in the future.”
“Our mission is to provide inclusive, affordable financial services that empower the estimated 100 million people in the U.S. who do not have a credit score or have been mis-scored,” said Oportun CEO Raul Vazquez. “This securitization allows us to further our mission of providing affordable, empowering financial services to our customers, the majority of whom earn low-to-moderate incomes and are typically shut out of the financial mainstream.”
Oportun issued its first securitization in June 2013.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Oportun is a high-growth, mission-driven CDFI and provider of inclusive, affordable financial services powered by a deep, data-driven understanding of its customers and advanced proprietary technology. By lending money to hardworking, low-to-moderate income individuals, Oportun helps them move forward in their lives, demonstrate their creditworthiness, and establish the credit history they need to access new opportunities. Oportun serves customers online, over the phone, or in-person in English and Spanish in the following 12 states: Arizona, California, Florida, Idaho, Illinois, Missouri, Nevada, New Jersey, New Mexico, Texas, Utah, and Wisconsin.