LendingPoint, the data and technology platform, announced today the closing of its first revolving and largest ever consumer loan ABS issuance. LendingPoint Receivables Trust 2020REV-1 (LDPT 2020-REV1) issued $328.5 million of notes backed by a pool of $365 million of direct-to-consumer loans originated on the LendingPoint platform.
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As of the cut-off date, borrowers in LDPT 2020-REV1 have a weighted average coupon and weighted average FICO score of 21.1% and 674, respectively. Guggenheim Securities acted as the sole structuring advisor and sole book-running manager. All collateral contributed to the transaction was held on LendingPoint’s balance sheet and, as the issuer of the transaction, LendingPoint also served as the risk retention sponsor. This is LendingPoint’s 4th rated securitization since its inaugural ABS issuance in August 2019. The proceeds from this revolving term ABS issuance will be used to fund a large portion of the company’s origination growth over the next 24 months, which is the length of the revolving period of this transaction.
“Our continued success and recurring ability to access the ABS market even in the midst of a global pandemic suggests that our capital markets investors as well as KBRA believe in our predictive credit scoring models, our robust underwriting platform and our effective servicing capabilities,” said LendingPoint CEO Tom Burnside. “Our portfolio is performing well within expectation, allowing us, after slowing in March and April of this year, to return to immediate growth and profitability.”
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The LendingPoint Receivables Trust securitization was rated by Kroll Bond Rating Agency, Inc. and includes $168.812 million of Class A notes rated “A-,” $64.438 million of Class B notes rated “BBB-,” $54.75 of Class C notes rated “BB-” and $36.5 million of Class D notes rated “B-.” The notes priced at a blended coupon of 4.734% per annum and provided for a 90% advance rate.
“We are pleased with the successful execution of our 4th KBRA-rated ABS transaction. The ABS market continues to be a core part of our diversified funding strategy, allowing us to efficiently manage the continued growth for our origination platform,” said Victor J. Pacheco, LendingPoint’s Chief Capital Officer.
Since originating its first loan in 2015, the LendingPoint platform has facilitated more than $2.3 billion of personal loans to customers nationwide. To date, the company has raised more than $261 million in capital and continues to expand its technology, data science, product lines and distribution channels, with its financing programs offered through thousands of merchants, service providers and ecommerce platforms as well as direct to consumers online.
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