Oportun Completes $425 Million Asset Backed Securitization

Rhea-AI Summary

Oportun (OPRT) has successfully completed a $425 million asset-backed securitization of one-year revolving fixed rate notes, secured by unsecured and secured installment loans. The transaction was over seven times oversubscribed and achieved a 6.95% average yield, marking a 127 basis point improvement from their August 2024 ABS financing.

The offering included five classes of fixed rate notes (Class A through E), rated by KBRA from AA- to B-. The weighted average coupon was 6.15%, with individual class coupons ranging from 5.01% to 10.00%. Deutsche Bank Securities acted as the sole structuring agent and co-lead, alongside Goldman Sachs and Jefferies.

Since June 2023, including this transaction, Oportun has raised approximately $2.8 billion in diversified financings through whole loan sales, securitizations, and warehouse agreements from fixed income investors and banks.

Positive

• Secured $425 million in asset-backed securitization
• Transaction was 7x oversubscribed, indicating strong investor demand
• 127 basis points lower yield compared to August 2024 financing
• Raised $2.8 billion in diversified financings since June 2023
• Improved credit performance noted in loan originations

Negative

• None.

Transaction over seven times oversubscribed

6.95% average yield 127 basis points lower than prior August 2024 ABS financing

SAN CARLOS, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced the issuance of $425 million of one-year revolving fixed rate asset-backed notes secured by a pool of unsecured and secured installment loans.

The offering included five classes of fixed rate notes: Class A, Class B, Class C, Class D, and Class E. KBRA rated all classes of notes, assigning ratings of AA-, A-, BBB-, BB-, and B-, respectively. Deutsche Bank Securities Inc. served as the sole structuring agent and co-lead, and Goldman Sachs & Co. LLC and Jefferies also served as co-leads.

The weighted average coupon on the transaction was 6.15%, and the weighted average yield was 6.95%. The Class A notes were priced with a coupon of 5.01% per annum; the Class B notes were priced with a coupon of 5.30% per annum; the Class C notes were priced with a coupon of 5.89% per annum; the Class D notes were priced at 98.19% with a coupon of 7.25% and a yield of 9.22% per annum; and the Class E notes were priced at 97.31% with a coupon of 10.00% and a yield of 13.07% per annum.

“I’m pleased that fixed income investors have responded favorably as Oportun has continued to originate high-quality loans with improved credit performance. This securitization was more than seven times oversubscribed and priced at an average yield 127 basis points lower than our prior August 2024 ABS financing,” said Jonathan Coblentz, Chief Financial Officer at Oportun. “Since June of 2023 and inclusive of this transaction, Oportun has raised approximately $2.8 billion in diversified financings, including whole loan sales, securitizations and warehouse agreements from fixed income investors and banks.”

For more information 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 in which such 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 a mission-driven financial services company that puts its members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $19.2 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members save an average of more than $1,800 annually. For more information, visit Oportun.com.

Investor Contact 
Dorian Hare
(650) 590-4323
ir@oportun.com

Media Contact
Michael Azzano
Cosmo PR for Oportun
(415) 596-1978
michael@cosmo-pr.com

FAQ

What is the size and type of Oportun's (OPRT) January 2025 securitization?

Oportun completed a $425 million one-year revolving fixed rate asset-backed securitization, secured by a pool of unsecured and secured installment loans.

What was the average yield and oversubscription rate for OPRT's January 2025 securitization?

The securitization had a 6.95% average yield and was more than seven times oversubscribed.

How much has Oportun (OPRT) raised in total financings since June 2023?

Oportun has raised approximately $2.8 billion in diversified financings through whole loan sales, securitizations, and warehouse agreements since June 2023.

What were the credit ratings assigned to OPRT's January 2025 securitization notes?

KBRA rated the five classes of notes from AA- (Class A) to B- (Class E).

How does OPRT's January 2025 securitization compare to its August 2024 financing?

The January 2025 securitization priced at an average yield 127 basis points lower than the August 2024 ABS financing.