Oportun costs $400 million in
SAN CARLOS, Calif., July 15. 10, 2022 (GLOBE NEWSWIRE) — Oportun (OPRT), a mission-driven fintech and digital banking platform, today announced that it has priced $400 million in fixed-rate asset-backed notes 2022-2 (the “Notes”) in a private asset-backed securitization transaction secured by a pool of unsecured and secured installment loans.
“With the price of this transaction, investors have reiterated their confidence in Oportun’s financial strength and AI-powered underwriting throughout the various cycles. We intend to continue to fund our business for responsible growth and are actively evaluating asset-backed capital markets and other debt securities,” said Jonathan Coblentz, Chief Financial and Administrative Officer at Oportun.
The Offer comprised four classes of Notes: Class A, Class B, Class C and Class D (the “Bonds”). DBRS, Inc. has rated all classes of notes, assigning ratings of AA (low) (sf), A (low) (sf), BBB (low) (sf) and BB (sf), respectively. The Class A, Class B, Class C and Class D Notes were placed with a diverse mix of institutional investors in a private offering pursuant to Rule 144A of the Securities Act of 1933, as than modified. The notes were valued with a weighted average yield of 7.996% per annum and a weighted average interest rate of 7.77%. Goldman Sachs & Co. LLC acted as lead bookrunner with Jefferies and JP Morgan Securities LLC as joint bookrunners.
The transaction is expected to close on July 22, 2022, subject to customary closing conditions.
This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration. or qualification under securities laws. of such jurisdiction.
This press release contains forward-looking statements regarding Oportun’s future business expectations that involve risks and uncertainties, including, but not limited to, the expected completion of the transaction and potential financing initiatives, including potential transactions in asset-backed capital markets and other debt securities. . Actual results may differ materially from anticipated results, and the results reported should not be considered as an indication of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of Oportun to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. forward-looking statements. These risks and uncertainties include the risks described in Oportun’s filings with the Securities and Exchange Commission, including Oportun’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements contained herein are made as of the date hereof. Oportun assumes no obligation to update this information, except as required by law. You should not place undue reliance on the forward-looking statements contained in this press release.
Oportun (OPRT) is an AI-powered digital banking platform that seeks to make financial health effortless for everyone. Driven by a mission to provide inclusive and affordable financial services, Oportun helps its nearly 1.7 million hardworking members meet their daily borrowing, saving, banking and investing needs. Since its inception, Oportun has provided over $13 billion in responsible and affordable credit, saved members over $2.2 billion in interest and fees, and automatically helped members set aside over $7.6 billion for rainy days and other needs. In recognition of its responsibly designed products, Oportun has been certified as a Community Development Financial Institution (CDFI) since 2009.