SoFi Announces Completion of First Offering of Rated Pass-Through Certificates

Fintech unicorn SoFi announced on Wednesday it has completed its $200 million offering of post-graduate student loan asset-backed certificates issued by SoFi Alternative Trust 2019-C (SAT 2019-C). According to SoFi, the Certificates are rated single-A by DBRS and mark the first rated pass-through certificate transaction issued by SoFi and the first publicly rated student loan pass-through transaction in the securitization market.

“The Certificates are secured by a portfolio of fixed-rate loans originated through SoFi’s private student loan refinancing program and use a pass-through structure whereby all payments will be allocated to the Certificates until its balance is paid in full. Unlike traditional student loan ABS transactions, SAT 2019-C does not use overcollateralization or bond subordination as forms of credit enhancement.  The A rating assigned to the certificates by DBRS reflects the strong credit attributes of the borrowers. The portfolio has a weighted average credit score of 783 and a weighted average annual income of $175,746.”

While sharing more details about the Certificates, Michelle Gill, CFO of SoFi, stated:

“We are pleased with the investor response to this offering. It provided us with an additional source of liquidity within our broad-based funding capabilities, while allowing us to meet the needs of investors seeking high quality assets.”

SoFi repoted that it plans to offer additional rated pass-through certificates as part of its ongoing ABS programs. The company added:

“With this transaction, SoFi has sponsored eight offerings in the asset-backed market in 2019, totaling $4.1 billion, and the company continues to be a top-ten ABS sponsor, ranking seventh among all sponsors and first among online lenders in 2019. SoFi has completed 26 rated student loan ABS transactions since its inaugural issuance in 2013. The company has originated over $42 billion across its personal loan, student loan and mortgage products.”

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