Oportun Financial Corporation (Nasdaq: OPRT) has successfully completed a significant milestone with the issuance of $439 million in two-year revolving fixed-rate asset-backed notes. This innovative financing is backed by a diverse pool of unsecured and secured installment loans.
The transaction includes five classes of fixed-rate notes, rated by Fitch as follows: Class A (AAA), Class B (AA-), Class C (A-), Class D (BBB-), and Class E (BB-). Notably, this marks the first time the company has achieved a AAA rating on its most senior bonds.
Goldman Sachs & Co. LLC acted as the sole structuring agent and co-lead for the offering, alongside Deutsche Bank Securities Inc., Jefferies, and Natixis Corporate & Investment Banking.
The weighted average coupon for this transaction stood at 5.57%, with a weighted average yield of 5.67%. Specific pricing details include a coupon of 4.88% for Class A notes, 5.28% for Class B, 5.52% for Class C, 6.45% for Class D, and 9.40% for Class E notes, priced at 98.95% with a yield of 10.19%.
Paul Appleton, Interim Chief Financial Officer at Oportun, expressed enthusiasm about the transaction, stating, "This transaction marks an important milestone for Oportun and reflects a growing recognition of the strength and resilience of our business. Achieving our first AAA rating demonstrates how far we’ve come in expanding access to affordable credit. The 5.67% yield on this bond issuance was 1.28% lower than our prior ABS transaction in January, reflecting robust investor demand and creating greater efficiency and value — both for Oportun and for the members we serve."
For additional information about Oportun, visit oportun.com. The notes were offered pursuant to Rule 144A under the Securities Act of 1933, as amended.
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 where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
About Oportun
Oportun (Nasdaq: OPRT) is committed to providing its members with access to responsible and affordable financial services. Since its founding, Oportun has successfully provided over $20.3 billion in credit and has saved its members more than $2.4 billion in interest and fees. For further details, visit Oportun.com or insideticker.com.
Contact Information
Investor Contact: Dorian Hare, (650) 590-4323, [email protected]
Media Contact: Michael Azzano, Cosmo PR for Oportun, (415) 596-1978, [email protected]