Oportun announced the issuance of approximately $538 million of two-year fixed rate asset-backed notes.
The offering included five classes of fixed rate notes: Class A, B, C, D, and E with Fitch ratings ranging from AAA to BB-.
The weighted average coupon on the transaction was 5.23%, and the weighted average yield was 5.29%.
Strong Investor Demand
Oportun's ability to secure a second AAA rating on senior notes and pricing 38 basis points better than previous demonstrates strong investor demand.
Debt Repayment
Oportun proactively paid $10 million towards higher cost corporate debt, strengthening its balance sheet.
Funding Cost Reduction
The successful transaction allowed Oportun to lower funding costs, strengthen its balance sheet, and expand credit access for borrowers.
- The transaction highlights Oportun's platform strength in delivering for investors and members.
- Earning a second AAA rating and pricing improvements showcase market confidence in Oportun's asset-backed securities.
The completion of the $538 million asset-backed securitization underscores Oportun's financial stability and growth prospects, enhancing its position in the market.