LendingPoint Closes $175.6 Million Direct-to-Consumer Loan Securitization and Inaugural, $61.7 Million Point-of-Sale Loan Securitization
Direct-to-consumer loan securitization rated by KBRA through 95% of pool balance with blended note yield of 4.25%
KENNESAW, GA., Nov ##, 2019 — Data and technology platform LendingPoint today announced that it has closed two additional securitizations of loans originated on the LendingPoint platform: LendingPoint Receivables Trust 2019-2 (“LDPT 2019-2”) issued $175.65 million of KBRA-rated notes backed by a pool of direct-to-consumer loans and LP LMS 2019-1 Asset Securitization Trust (“LPMS 2019-1”) issued $61.7 million of unrated notes backed by a pool of point-of-sale loans. Guggenheim Securities was sole structuring advisor and sole manager of both transactions.
“The strong execution of these two issuances builds on the strength of our inaugural ABS deal issued in August of this year. We look forward to continuing with our securitization program and becoming a premier issuer of unsecured consumer loan-backed notes. Securitization is a core part of our funding strategy as our origination platform grows,” said LendingPoint CEO Tom Burnside.
“We are very pleased with the execution on our direct-to-consumer loan ABS issuance, and we are especially pleased with the execution on our inaugural, unrated point-of-sale loan ABS transaction that closed the same day,” said Victor Pacheco, LendingPoint’s Chief Innovation Officer who also heads up the Company’s Capital Markets Group. “We expect continued growth in our point-of-sale origination business as we add more merchants to our platform., Our ability to access the ABS markets with point-of-sale loan securitizations is critical to that growth.”
KBRA’s ratings for LDPT 2019-2 include A- for $108.81 million of Class A notes, BBB- for $27.73 million of Class B notes, BB- for $24.96 million of Class C notes, and B- for $14.14 million of Class D notes. The Class A notes represent 58.85% of the pool balance with a 3.091% yield. The Class B notes are 15.00% of the pool balance with a 3.755% yield. Class C are 13.50% of the pool balance with a 4.706% yield, while the Class D notes represent 7.65% of the pool balance, with a 6.292% yield. The blended yield on the notes is 4.257% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5%.
LPMS 2019-1, the unrated point-of-sale transaction issued Class A, B and C notes. The Class A notes represent 75.15% of the pool balance with a 4.250% yield. The Class B notes are 12.20% of the pool balance with a 5.551% yield. The Class C are 7.65% of the pool balance with a 7.539% yield. The blended yield on the notes is 5.146% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5%.
LendingPoint is a data and technology platform that originates unsecured personal loans both direct to consumers online and at the point of sale for financial institutions and for its own balance sheet. The company uses its data algorithms and technology to create a better lending and borrowing experience by finding more reasons to say “yes” — helping consumers across the credit spectrum unlock access to affordable loans. Its LendingPoint Merchant Solutions platform provides merchants and other service providers a fully integrated, one-stop retail financing solution to convert more customers at the point of sale.
LendingPoint was named in 2018 one of the nation’s best consumer loan companies by U.S. News & World Report, one of the Best Personal Loans by NerdWallet, and the fastest-growing private company in metro Atlanta by the Atlanta Business Chronicle. In 2019, LendingPoint placed 17th on Inc. 5000’s list of fastest-growing private companies in the US, was listed as one of the top 40 fastest growing companies in Atlanta by ACG, and the company’s CEO Tom Burnside was chosen as Entrepreneur of the Year Finalist Southeast by EY. It is a privately held company headquartered in Kennesaw, Ga., with offices in New York.