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CommonBond Announces $168 Million Loan Securitization

CommonBond Announces $168 Million Loan Securitization

Signs of maturity in the fintech boom are surfacing. Regulators now speak of sandboxes and national charters for fintech companies, and some of the young guns on the scene are starting to add more features to their products.

Now, a large fintech lender is getting recognition for the quality of its loan securities.

CommonBond, a fintech lender that uses data technology to lower the costs of student loans, today announced a $168 million securitization of student loan debt backed by $178 million in collateral. The package received an A1 rating from Moody's Investors Service. Barclays PLC (ADR) (NYSE: BCS) and Goldman Sachs Group Inc (NYSE: GS) ran the books and jointly managed the account for the transaction.

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"CommonBond has built a sterling reputation in the capital markets due to our meticulous, data-driven underwriting," said Morgan Edwards, CommonBond's chief financial officer, in a press release. "We continue to be excited to see new investors participate with each transaction we bring to the market and expect to see the diversity of investors increase with subsequent deals."

The securitization is the company's third, following a $150 million package in April of this year and a $100 million offering last June.

"This securitization represents a progression in the sophistication in our capital markets team and CommonBond as a whole," said Phil DeGisi, CommonBond's chief marketing officer, in an interview with Benzinga. "We're excited that the strength of our underwriting is being recognized by some of the most respected ratings agencies in the country."

The company's first securitization was the first time Moody's had ever given an investment-grade rating to an inaugural marketplace issuer, DeGisi added.

CommonBond announced the closing of $300 million in fundraising in July, as well as the acquisition of Gradible, a company that offers insights on how to manage student loan debt.

The company is backed by investors including Vikram Pandit, former Citi chief, and Tom Glocer, former CEO of Thomson Reuters.

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Image Source: Provided by and used with explicit permission from CommonBonds.


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