LendingPoint, a platform that enables the origination of unsecured personal loans, has closed on $246 million in securitizations. LendingPoint said that two securitizations, one for direct to consumer loans – LendingPoint Receivables Trust 2020-1 (LDPT 2020-1) issued $200 million of rated notes backed by a pool of $210.5 million in originated loans. The second (LPMS 2020-1), unrated, backed by point-of-sale loans, issued $45.8 million of notes with a weighted average yield of 4.910%.
Kroll Bond Rating Agency, Inc. (KBRA) assigned preliminary ratings to four classes of notes issued totaling $200.0 million by LendingPoint 2020-1 Asset Securitization Trust, a consumer loan ABS transaction.
These transactions represent LendingPoint’s third KBRA rated securitization of non-prime unsecured consumer loans and second unrated securitization of point-of-sale loans.
“By combining our unique technology platform and proprietary algorithms, we have been able to successfully provide needed credit products to consumers directly, as well as through our merchant partners at the point of sale. Our success in the ABS market helps ensure that we can continue to scale our business profitably while democratizing commerce through expanded credit access and accelerating commerce by facilitating more transactions for our merchant partners.”
Victor Pacheco, LendingPoint’s Chief Capital Officer, qualified the securitizations as emblematic of their success in the direct to consumer and point of sale loan market:
“We’re pleased with the strong reception we’ve received in the ABS market and look forward to continuing our securitization program throughout 2020 and beyond.”
KBRA’s ratings for LP 2020-1 include A- for $113.789 million Class A notes, BBB- for $34.000 million Class B notes, BB- for $29.684 million Class C notes, and B- for $22.527 million Class D notes. The Class A notes represent 54.05% of the pool balance with a 2.526% yield. The Class B notes are 16.15% of the pool balance with a 3.128% yield. Class C were 14.10% of the pool balance with a 4.179% yield, while the Class D notes represent 10.70% of the pool balance, with a 6.408% yield. The blended yield on the notes is 4.037% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5.0%.
LPMS 2020-1, the unrated POS transaction issued Class A, B and C notes. The Class A notes represent 75.15% of the pool balance with a 4.00% yield. The Class B notes are 12.20% of the pool balance with a 5.301% yield. The Class C were 7.65% of the pool balance with a 7.289% yield. The blended yield on the notes is 4.910% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5.0%.