SoFi Technologies, Inc. (NASDAQ: SOFI), which claims to be a “member-centric, one-stop shop” for digital financial services that helps members borrow, save, spend, invest and protect their money, announced the issuance of $697.6 million in notes secured by a pool of personal loans originated by SoFi Bank, N.A.
The transaction was a co-contributor securitization with “collateral consisting primarily of loans previously placed with loan platform business partners.”
SoFi’s loan platform business, which originates loans on “behalf of third parties, generated $2.1 billion in personal loan volume in 2024.”
This represents the first securitization of “new collateral in SoFi’s Consumer Loan Program (SCLP) since 2021 and the first using collateral originated in the loan platform business.”
It provides co-contributors with meaningful liquidity to support their ongoing investment in the loan platform business “given the strong market demand for SoFi’s personal loans. SoFi issued notes to 35 investors in the deal, representing a range of new and existing partners.”
Chris Lapointe, Chief Financial Officer of SoFi said:
“As SoFi’s personal loan products resonate with more and more people, we see continued strong demand for our loans in the capital markets. This offering demonstrates the clear value of our loan platform business and our diversified funding strategy.”
The transaction (SCLP 2025-1) closed “on February 28, 2025 and consisted of four classes of notes rated by Fitch Ratings and Morningstar DBRS from ‘AAA’ to ‘BBB+’.”
Fitch Ratings assigned ratings to all four classes of notes, and Morningstar DBRS provided “ratings on the Class A, B, and C notes.”
Goldman Sachs was the structuring agent and joint lead bookrunner with Bank of America.
The transaction priced at industry-leading costs of funds levels, with a weighted average spread of “87 basis points and an all-in yield of 5.10%. The notes were offered pursuant to Rule 144A under the Securities Act of 1933, as amended.”
Since the launch of SCLP in 2015, SoFi has issued “more than $12 billion in notes to investors across 25 transactions.”
As noted in the update, SoFi is a provider of digital financial services and is on a mission “to help people achieve financial independence to realize their ambitions.”
The company’s full suite of financial products and services “helps its over 10.1 million SoFi members borrow, save, spend, invest, and protect their money better by giving them fast access to the tools they need to get their money right, all in one app. SoFi also equips members with the resources they need to get ahead – like credentialed financial planners, exclusive experiences and events, and a thriving community – on their path to financial independence.”
SoFi explains that it innovates across “three business segments: Lending, Financial Services – which includes SoFi Checking and Savings, SoFi Invest, SoFi Credit Card, SoFi Protect, and SoFi Insights – and Technology Platform, which offers the only end-to-end vertically integrated financial technology stack.”