Online Lender CommonBond Issues 2nd AAA Rated Securitization

Online lender CommonBond has issued its second AAA rated securitization from Moody’s and DBRS. This is the largest securitization for CommonBond yet at $292 million of total collateral. This was the second securitization for 2018 and the 7th overall bringing the total to $1.5 billion.

CommonBond said a mix of new and pre-existing investors participated in the transaction.

Goldman Sachs served as structuring agent, co-lead manager, book-runner, and co-sponsor for this securitization. Barclays, Citi, and Guggenheim Securities also served as co-lead managers and book-runners on the transaction.

Additionally, CommonBond noted that Moody’s recently upgraded six senior tranches in three CommonBond securitization to AAA ratings. DBRS also upgraded 12 tranches in four securitizations this spring.

The securitizations are said to be indicative of ongoing growth and demand for the Fintech’s products. CommonBond refinances loans to college graduates, new loans to current students, and provides  multiple student loan repayment benefits to employees through its CommonBond for Business program.

Sam Luk, head of capital markets at CommonBond, said the company is maintaining a strong track record credit performance.

“We continue to generate high-quality assets, which has encouraged the expansion of our investor base. We also remain committed to serving as a programmatic issuer, and consistently providing best-in-class products to consumers, partners, and investors.”

The company announced a $50M Series D equity funding round in March and has secured over $3B in lending capacity. Fast Company named CommonBond one of the World’s 50 Most Innovative Companies in 2018.

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