Oportun Completes $538 Million Asset Backed Securitization

Rhea-AI Summary

Oportun (Nasdaq: OPRT) has successfully completed a $538 million asset-backed securitization backed by unsecured and secured installment loans. The two-year revolving fixed rate notes were issued in five classes, with the Class A notes receiving a AAA rating from Fitch. The transaction achieved a weighted average yield of 5.294%, marking a 38 basis points improvement from their June financing.

The offering featured coupon rates ranging from 4.49% for Class A notes to 9.20% for Class E notes. Additionally, Oportun has proactively paid down $10 million of higher-cost corporate debt, reducing their October 2024 corporate financing facility balance to $212.5 million from the initial $235 million.

Positive

• Secured AAA rating on senior notes, demonstrating strong credit quality
• Achieved 38 basis points lower yield compared to June ABS financing
• Successfully raised $538 million through asset-backed securitization
• Proactively paid down $10 million in higher-cost corporate debt
• Strong investor demand including new investors

Negative

• Still carries $212.5 million in higher-cost corporate financing facility
• Has $27.5 million in mandatory corporate loan payments due by January 2026

Insights

Financial Analyst

Oportun's $538M securitization with AAA ratings demonstrates improved market confidence, reduced funding costs, and strengthened balance sheet position.

Oportun has successfully completed a $538 million two-year revolving fixed rate asset-backed securitization, secured by a pool of installment loans. This transaction represents a significant improvement in the company's funding profile, with the weighted average yield of 5.29% coming in 38 basis points lower than their previous ABS financing in June. This meaningful reduction in funding costs directly enhances profitability potential.

The deal's structure includes five classes of notes with Fitch assigning a coveted AAA rating to the most senior tranche. The ratings cascade from AAA down to BB- across the various note classes, with corresponding coupons ranging from 4.49% for Class A to 9.20% for Class E notes. The achievement of a second AAA rating signals growing market confidence in Oportun's underwriting quality and collateral performance.

Beyond the securitization, Oportun has proactively addressed its corporate debt obligations, paying down $10 million of higher-cost corporate debt since Q2. This reduces the outstanding balance on their corporate financing facility from the initial $235 million in October 2024 to $212.5 million currently. This early repayment strategy directly lowers interest expenses while addressing $27.5 million in mandatory payments due by January 2026.

The successful execution of this securitization, particularly with improved pricing during a period of elevated interest rates, demonstrates both investor confidence in Oportun's credit quality and management's focus on optimizing capital structure. The company is effectively leveraging this favorable funding to strengthen its balance sheet while supporting its core mission of expanding affordable credit access.

5.294% average yield, 38 basis points lower than previous ABS financing in June

AAA rating on the most senior bonds; and

Company has proactively paid down $10 million of higher cost corporate debt since end of the second quarter

SAN CARLOS, Calif., Aug. 21, 2025 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced the issuance of approximately $538 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. Jefferies served as the sole structuring agent and co-lead, and Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC and Natixis Corporate & Investment Banking also served as co-leads.

The weighted average coupon on the transaction was 5.23%, and the weighted average yield was 5.29%. The Class A notes were priced with a coupon of 4.49% per annum; the Class B notes were priced with a coupon of 4.93% per annum; the Class C notes were priced with a coupon of 5.18% per annum; the Class D notes were priced with a coupon of 5.91% per annum; and the Class E notes were priced with a coupon of 9.20% per annum.

“This transaction reflects the continued strength of our platform and our ability to deliver for both our investors and members,” said Paul Appleton, Interim Chief Financial Officer at Oportun. “Earning a second AAA rating on our senior notes and pricing 38 basis points better than our June deal demonstrates strong demand for Oportun’s asset-backed securities, including from new investors. This demand allows us to lower funding costs, strengthen our balance sheet, and expand affordable credit to more qualified borrowers.”

Following the second quarter and the execution of the new ABS transaction, Oportun proactively paid $10 million toward the $27.5 million in mandatory corporate loan payments due by January 2026 — further strengthening its balance sheet. Oportun has now reduced the initial October 2024 $235 million balance on its higher cost corporate financing facility to $212.5 million.

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 $20.8 billion in responsible and affordable credit, saved its members more than $2.5 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 securitization?

Oportun completed a $538 million asset-backed securitization with the senior Class A notes receiving a AAA rating from Fitch.

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

The securitization has a weighted average yield of 5.294%, which is 38 basis points lower than their previous ABS financing in June.

How much corporate debt has Oportun paid down since Q2 2025?

Oportun has proactively paid down $10 million of their higher-cost corporate debt, reducing the October 2024 facility balance to $212.5 million.

What are the coupon rates for different classes in OPRT's securitization?

The coupon rates range from 4.49% for Class A notes, 4.93% for Class B, 5.18% for Class C, 5.91% for Class D, and 9.20% for Class E notes.

How much does Oportun need to pay in mandatory corporate loan payments by 2026?

Oportun has $27.5 million in mandatory corporate loan payments due by January 2026.