Oportun Completes $439 Million Asset Backed Securitization

Rhea-AI Summary

Oportun (OPRT) has successfully completed a $439 million asset-backed securitization, marking a significant milestone with its first AAA rating on senior bonds. The two-year revolving fixed rate notes are secured by unsecured and secured installment loans, with five classes rated from AAA to BB- by Fitch. The transaction achieved a weighted average yield of 5.67%, which is 128 basis points lower than their January ABS financing. Goldman Sachs led the structuring, with Deutsche Bank, Jefferies, and Natixis as co-leads. The Class A notes were priced at 4.88%, Class B at 5.28%, Class C at 5.52%, Class D at 6.45%, and Class E at 9.40% with a 10.19% yield. This improved pricing reflects strong investor demand and demonstrates Oportun's growing market strength in providing affordable credit.

Positive

• First-ever AAA rating achieved on senior bonds, demonstrating improved creditworthiness
• Secured favorable 5.67% weighted average yield, 128 basis points lower than previous financing
• Strong investor demand leading to improved pricing efficiency
• Successfully raised significant capital ($439M) to support business operations

Negative

• None.

Insights

Financial Analyst

Oportun's $439M securitization achieves first AAA rating with 128bps lower yield, significantly improving funding costs and demonstrating enhanced market confidence.

Oportun's latest $439 million asset-backed securitization represents a significant milestone for the company's funding strategy. The 5.67% weighted average yield marks a substantial 128 basis point improvement from their January financing round, translating to approximately $5.6 million in annual interest savings on this issuance alone.

The achievement of an AAA rating from Fitch on the senior notes is particularly noteworthy as it represents the first time Oportun has secured this highest possible credit rating. This rating upgrade signals strong institutional confidence in the quality of Oportun's loan portfolio and underwriting practices despite operating in the higher-risk consumer lending segment.

The multi-tranche structure (Classes A through E) demonstrates sophisticated capital markets execution, with pricing ranging from 4.88% for AAA-rated senior tranches to 10.19% yield on the BB- rated subordinate notes. This tiered approach optimizes the company's overall funding costs while accommodating different investor risk appetites.

The improved pricing indicates stronger demand for Oportun's securities, suggesting institutional investors have growing confidence in the company's credit performance and business model sustainability. For a financial services company focused on underserved markets, this reduced cost of capital directly enhances their ability to offer competitive rates to customers while maintaining profitability - reinforcing their mission-driven approach with tangible financial benefits.

5.67% average yield, 128 basis points lower than the previous ABS financing in January, AAA rating on the most senior bonds – a first for the Company

SAN CARLOS, Calif., June 05, 2025 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced the issuance of $439 million of two-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. Fitch rated all classes of notes, assigning ratings of AAA, AA-, A-, BBB-, and BB-, respectively. Goldman Sachs & Co. LLC served as the sole structuring agent and co-lead, and Deutsche Bank Securities Inc., Jefferies and Natixis Corporate & Investment Banking also served as co-leads.

The weighted average coupon on the transaction was 5.57%, and the weighted average yield was 5.67%. The Class A notes were priced with a coupon of 4.88% per annum; the Class B notes were priced with a coupon of 5.28% per annum; the Class C notes were priced with a coupon of 5.52% per annum; the Class D notes were priced with a coupon of 6.45% per annum; and the Class E notes were priced at 98.95% with a coupon of 9.40% and a yield of 10.19% per annum.

“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,” said Paul Appleton, Interim Chief Financial Officer at Oportun. “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 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 $20.3 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members set aside 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 rating of Oportun's (OPRT) latest asset-backed securitization?

Oportun's latest asset-backed securitization is $439 million, with five classes of notes rated from AAA to BB- by Fitch, marking their first AAA rating on senior bonds.

What is the weighted average yield of OPRT's June 2025 securitization?

The weighted average yield of the securitization is 5.67%, which is 128 basis points lower than their previous ABS financing in January.

Who were the lead arrangers for Oportun's $439M securitization?

Goldman Sachs served as the sole structuring agent and co-lead, with Deutsche Bank Securities, Jefferies, and Natixis Corporate & Investment Banking as co-leads.

What are the coupon rates for different classes of OPRT's 2025 ABS notes?

Class A: 4.88%, Class B: 5.28%, Class C: 5.52%, Class D: 6.45%, and Class E: 9.40% with a 10.19% yield.

How long is the term of Oportun's 2025 asset-backed securitization?

The notes are two-year revolving fixed rate asset-backed notes.