LendingPoint Closes Inaugural Securitization Of Consumer Loans

Online loan provider LendingPoint said Wednesday that it successfully issued $177.85 million in notes backed by $187.22 million in direct-to-consumer loans.

“We are very pleased that our first securitization received such an enthusiastic response from the ABS market,” LendingPoint CEO Tom Burnside said in a statement. 

“The strong rating report, the efficient deal structure and the attractive pricing all validate our decision to focus first on credit as the initial step on our mission to revolutionize and democratize commerce. As we continue to expand our presence in the point-of-sale market, as well as grow our online, direct-to-consumer lending program, we intend to return frequently to the ABS markets with loans arising from both origination channels.”

The diversified securitization was rated by Kroll Bond Rating Agency and includes notes rated A-, BBB-, BB- and B-. The notes are priced at an annual yield of 4.05%and the risk adjusted yield is 13.14% per annum.

“The quality of the note buyers, the blended note rate, the overcollateralization target and the adjusted yield are all extraordinary and seem to signal that LendingPoint’s plan to issue periodic securitization will be welcomed in the markets,” Burnside said. 

LendingPoint first began lending in 2015; since then, the platform said it has helped more than 125,000 people borrow nationwide.

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