LendingPoint Completes $ 175.6 Million Direct Consumer Loan Securitization and Inaugurates $ 61.7 Million Point-of-Sale Loan Securitization
KENNESAW, Georgia – (COMMERCIAL THREAD) – Data and technology platform LendingPoint today announced that it has completed two additional securitizations of loans issued on the LendingPoint platform: LendingPoint Receivables Trust 2019-2 (“LDPT 2019-2”) has issued $ 175.65 million of KBRA-rated bonds backed by a pool of and LP LMS 2019-1 Asset Securitization Trust (âLPMS 2019-1â) issued $ 61.7 million of unrated notes backed by a pool of point-of-sale loans. Guggenheim Securities was the sole structuring advisor and sole manager of the two transactions.
âThe strong execution of these two issues builds on the strength of our first ABS deal issued in August of this year. We look forward to continuing our securitization program and becoming a leading issuer of unsecured consumer loan backed notes. Securitization is a central part of our funding strategy as our origination platform grows, âsaid Tom Burnside, CEO of LendingPoint.
âWe are very pleased with the execution of our direct-to-consumer loan ABS issue, and we are particularly pleased with the execution of our first unrated point-of-sale loan ABS transaction which closed on same day â, declared Victor Pacheco. , chief innovation officer for LendingPoint, who also heads the company’s Capital Markets group. âWe anticipate continued growth in our point-of-sale origination business as we add more merchants to our platform. Our ability to access ABS markets with point-of-sale loan securitizations is critical to this growth. ”
KBRA’s ratings for LDPT 2019-2 include A- for $ 108.81 million of Class A notes, BBB- for $ 27.73 million of Class B notes, BB- for $ 24.96 million of Class C and B- Notes for $ 14.14 million of Class D Notes. Class A Notes represent 58.85% of the pool balance with a return of 3.091%. Class B Notes represent 15.00% of the Pool Balance with a yield of 3.755%. Class C represents 13.50% of the pool balance with a yield of 4.706%, while class D notes represent 7.65% of the pool balance, with a yield of 6.292%. The blended return on the Notes is 4.257% and the transaction has both an over-collateralization target and an over-collateralization amount of 5%.
LPMS 2019-1, the unrated point-of-sale transaction issued Class A, B and C notes. Class A notes represent 75.15% of the pool balance with a yield of 4.250%. Class B Notes represent 12.20% of the pool balance with a yield of 5.551%. Class C represents 7.65% of the pool balance with a yield of 7.539%. The blended return on the Notes is 5.146% and the transaction has both an over-collateralization target and an over-collateralization amount of 5%.
LendingPoint is a data and technology platform that issues unsecured personal loans both directly to consumers online and at the point of sale for financial institutions and for its own balance sheet. The company uses its data algorithms and technology to create a better lending and borrowing experience by finding more reasons to say ‘yes’ – helping consumers across the credit spectrum unlock access to credit. affordable loans. Its LendingPoint Merchant Solutions platform provides merchants and other service providers with a fully integrated, one-stop retail finance solution to convert more customers at the point of sale.
LendingPoint was named one of the nation’s top consumer loan companies in 2018 by American News and World Report, one of the best personal loans by NerdWallet, and the fastest growing private company in the Atlanta metro by the Atlanta Business Column. In 2019, LendingPoint placed 17th on Inc’s list. 5,000 of the fastest growing private companies in the United States; ranked 9th on the 2019 Deloitte Technology Fast 500; named one of the 40 Fastest Growing Atlanta Companies by ACG; and company CEO Tom Burnside was chosen by EY as a finalist for Southeast Entrepreneur of the Year. LendingPoint is a privately held company headquartered in Kennesaw, Georgia, with offices in New York.