Oportun completes its 11th asset-backed securitization in the amount of $225 million

SAN CARLOS, CA – July 13, 2018 – Oportun, a Community Development Financial Institution (CDFI) providing inclusive, affordable financial services that empower customers to build a better future, today announced its 11th securitization, an issuance of $225 million of three-year, asset-backed bonds secured by a pool of its installment loans.

The Class A, Class B, Class C, and Class D bonds that were issued received ratings of A+ (sf), BBB+ (sf), BB (sf) and B(sf), respectively, from Kroll Bond Rating Agency.  The Class A, Class B and Class C 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 D bonds were retained by an affiliate of Oportun. Goldman Sachs & Co. was the lead book-running manager. Jefferies and Morgan Stanley were joint book-runners.

According to Oportun Chief Financial Officer Jonathan Coblentz, Oportun’s bond transactions have attracted a diverse and growing base of institutional investors. “We have built a robust, asset-backed securitization platform to support our business and are pleased with the strong ratings from Kroll Bond Rating Agency,” said Coblentz.

Oportun CEO Raul Vazquez explained that Oportun is committed to building a sustainable business that helps people shut out of the financial mainstream. “We seek to serve the approximately 100 million low-to-moderate income adults in the United States who do not have access to affordable credit,” said Vazquez. “With this latest securitization, we will be able to help more of them access the credit they deserve, whether or not they already have credit history, so they can move forward with their lives.”

Oportun’s proprietary, centralized lending platform leverages advanced data analytics, machine learning, and innovative next-generation technology to provide loans at a fraction of the cost of alternatives from many of the other financial services companies serving low-to-moderate income communities and people with limited credit history. According to research commissioned by Oportun and conducted by the Center for Financial Services Innovation (CFSI), a leading authority on consumer financial health, Oportun customers have already saved more than $1.1 billion dollars by choosing Oportun loans instead of one of the other alternatives widely available to individuals with limited credit history.  Those alternatives — which include payday, pawn loans and others — are four times more expensive on average but can be up to seven times more expensive.

Since its founding in 2005, Oportun has served more than 1.1 million customers and disbursed more than $5.3 billion through 2.4 million affordable, small dollar loans by using a proprietary risk engine capable of ‘scoring the unscoreable.’  Oportun has also helped more than half a million people begin to establish a credit score for the first time.

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.

For more information about Oportun, please visit Oportun.com.

ABOUT OPORTUN

Oportun is a mission-driven financial services company that helps people establish and maintain financial stability despite a lack of credit history or low and volatile incomes. Oportun’s mission is to help people build a better future by providing affordable, empowering financial services.

Oportun uses advanced data analytics, machine learning, and innovative next-generation technology to provide responsible and affordable personal loans to people with low-to-moderate incomes, many of who have little or no credit history. Oportun’s proprietary, centralized lending platform calculates each loan applicant’s ability to repay, approves those loans the company believes can be paid back, and sets loan amounts and terms to fit customer budgets. Customer account information is reported to two nationwide credit bureaus to help customers establish credit history.

Oportun operates more than 270 retail locations and delivers bilingual (English/Spanish) customer service through an omni-channel approach that includes retail locations, contact centers, and mobile to customers in eleven states: Arizona, California, Florida, Idaho, Illinois, Missouri, Nevada, New Mexico, Texas, Utah, and Wisconsin.

In April 2018, Oportun announced that it would soon commence testing of a new, no-cost service, OportunPath, that will help people avoid the negative consequences of cash shortfalls to help them maintain a path to financial stability. OportunPath will monitor a customer’s bank account balance and provide daily alerts so the customer is aware of low balances. For eligible customers, it will also offer to bridge cash flow shortfalls with a small deposit to top up their bank account.

In recognition of Oportun’s goals of increasing economic opportunity for its clients, promoting community development, and serving low-income or underserved communities, Oportun has been certified by the United States Department of Treasury as a Community Development Financial Institution (CDFI) since 2009.