Lendbuzz, an AI-powered Fintech company that enhances consumer access to credit for vehicle purchases, has completed a $262 million securitization, identified as LBZZ 2024-3.
The transaction is collateralized by a pool of auto loans made to consumers, secured by new and used automobiles, light-duty trucks, and vans.
This latest securitization is a significant milestone for Lendbuzz, the company said, reflecting strong investor demand and confidence in the company’s credit performance and collateral strength.
The LBZZ 2024-3 issuance consists of four classes of notes: Class A-1, Class A-2, Class B, and Class C.
S&P Global Ratings (S&P) and Kroll Bond Rating Agency (KBRA) have provided ratings for the notes, with NR/K1+, AA/AAA, A/AA-, and NR/A- assigned to the respective classes.
Goldman Sachs & Co. LLC served as the transaction’s lead book-runner and structuring agent, while J.P. Morgan Securities LLC and RBC Capital Markets, LLC acted as joint book-runners.
The co-managers for the securitization included Mizuho, MUFG, and Regions Securities LLC.
The transaction is Lendbuzz’s largest asset-backed securities (ABS) offering to date, and strong investor subscription levels highlight the growing market interest in the company’s offerings.
This securitization marks Lendbuzz’s eighth public ABS issuance since the company launched its program three years ago.
To date, the company has completed over $1.4 billion in securitizations, reinforcing its commitment to a diversified funding strategy.
Lendbuzz said it has attracted significant new investor interest, adding 27 new investors to its platform in 2024 alone.
Lendbuzz, founded in 2015 and headquartered in Boston, Massachusetts, leverages artificial intelligence and machine learning algorithms to assess the creditworthiness of consumers with limited or no credit history.
This underserved segment of the market has traditionally been overlooked by mainstream financial institutions.
By partnering with auto dealerships, Lendbuzz provides financing solutions that enable dealerships to serve a more diverse customer base while offering consumers better access to credit for vehicle purchases, according to the announcement.
