The deal was 7x oversubscribed on its senior bonds – a company record
CommonBond, a leading financial technology company, announced the completion of its latest securitization totaling over $225 million in loans, setting a company record, for the most investor demand relative to bonds available, at 7x. The securitization received AAA ratings from Moody’s and DBRS, continuing the company’s track record of AAA-rated transactions.
The transaction was CommonBond’s tenth and brings the company’s total securitized loan amount to over $2 billion. Goldman Sachs served as structuring agent, co-lead manager, book-runner, and co-sponsor for this securitization. Barclays, Citi, BMO and Guggenheim Securities also served as co-lead managers and book-runners on the transaction.
“The market for high quality bonds has come roaring back,” said Sam Luk, Head of Capital Markets and Credit at CommonBond. “We were pleased to see the strong receptivity from investors – a testament to the platform we’ve built, the credit we underwrite, and the discipline with which we operate.”
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The transaction priced better than the market’s expectations. The senior bonds priced 20-30 basis points tighter than initial market indications and landed on 170 basis points of credit spread. The high demand for the bonds also contributed to tighter spreads.
Securitization is one of multiple ways that CommonBond funds its loans. Other loan funding sources include whole loan sale commitments and warehouse line capacity. A highly diversified funding system ensures funding that is capable of withstanding market shocks over time.
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