Direct-to-consumer loan securitization rated by KBRA through 95% of pool balance with blended note yield of 4.037%
Data and technology platform LendingPoint announced the closing of two securitizations of both direct-to-consumer and point-of-sale loans. LendingPoint Receivables Trust 2020-1 (“LDPT 2020-1”) issued $200 million of rated notes backed by a pool of $210.5 million of direct-to-consumer loans originated on the LendingPoint platform. LPMS 2020-1, an unrated securitization backed by point-of-sale loans, issued $45.8 million of notes with a weighted average yield of 4.910%.
Kroll Bond Rating Agency, Inc. (KBRA) assigned preliminary ratings to four classes of notes issued totaling $200.0 million by LendingPoint 2020-1 Asset Securitization Trust, a consumer loan ABS transaction. These transactions represent LendingPoint’s third (3rd) KBRA rated securitization of non-prime unsecured consumer loans and second (2nd) unrated securitization of point-of-sale loans.
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“By combining our unique technology platform and proprietary algorithms, we have been able to successfully provide needed credit products to consumers directly, as well as through our merchant partners at the point of sale. Our success in the ABS market helps ensure that we can continue to scale our business profitably while democratizing commerce through expanded credit access and accelerating commerce by facilitating more transactions for our merchant partners,” said LendingPoint CEO Tom Burnside.
“For our company, the strong execution of these securitizations solidifies our success in the market with both direct-to-consumer and point-of-sale loans. We’re pleased with the strong reception we’ve received in the ABS market and look forward to continuing our securitization program throughout 2020 and beyond,” said Victor Pacheco, LendingPoint’s Chief Capital Officer.
KBRA’s ratings for LP 2020-1 include A- for $113.789 million Class A notes, BBB- for $34.000 million Class B notes, BB- for $29.684 million Class C notes, and B- for $22.527 million Class D notes. The Class A notes represent 54.05% of the pool balance with a 2.526% yield. The Class B notes are 16.15% of the pool balance with a 3.128% yield. Class C were 14.10% of the pool balance with a 4.179% yield, while the Class D notes represent 10.70% of the pool balance, with a 6.408% yield. The blended yield on the notes is 4.037% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5.0%.
LPMS 2020-1, the unrated POS transaction issued Class A, B and C notes. The Class A notes represent 75.15% of the pool balance with a 4.00% yield. The Class B notes are 12.20% of the pool balance with a 5.301% yield. The Class C were 7.65% of the pool balance with a 7.289% yield. The blended yield on the notes is 4.910% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5.0%.
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