LendingPoint announced on Wednesday it has closed its inaugural securitization of consumer loans. The company reported that the securitization, LendingPoint Receivables Trust 2019-1 (LDPT2019) issued a total of $177.85 million of notes backed by a pool of $187.22 million of direct-to-consumer loans originated on the LendingPoint platform.
“The LendingPoint Receivables Trust securitization was rated by Kroll Bond Rating Agency, Inc. and includes $117.76 million of Class A notes rated “A-“, $24.74 million of Class B notes rated “BBB-“, $23.68 million of Class C notes rated “BB-” and $10.67 million of Class D notes rated “B-.” The notes priced at a blended yield of 4.05% per annum and provided for a 95% advance rate. The transaction has a 5% overcollateralization Deposit and a 5% overcollateralization Target. The risk adjusted yield of the receivables securing the notes is expected to be 13.14% per annum.”
While sharing more details about the securitization, Tom Burnside, CEO of LendingPoint, stated:
“We are very pleased that our first securitization received such an enthusiastic response from the ABS market. The strong rating report, the efficient deal structure, and the attractive pricing all validate our decision to focus first on credit as the initial step on our mission to revolutionize and democratize commerce.”
LendingPoint went on to add that since making its first loan in 2015 its platform has helped fund more than $1.4 billion of personal loans to more than 125,000 borrowers nationwide.