Oportun issues $538 million in asset-backed securities at 5.29% yield

SAN CARLOS, Calif. - Oportun (NASDAQ:OPRT), a financial services company with a market capitalization of $255 million and strong liquidity position, announced Thursday it has issued approximately $538 million of two-year revolving fixed rate asset-backed notes secured by unsecured and secured installment loans. According to InvestingPro analysis, the company maintains a healthy current ratio of 51.7x, indicating robust short-term financial stability.

The offering included five classes of notes with ratings from Fitch ranging from AAA for the most senior Class A notes to BB- for Class E notes. The weighted average yield was 5.29%, which is 38 basis points lower than the company’s previous asset-backed securities financing completed in June.

The Class A notes were priced with a 4.49% coupon, Class B at 4.93%, Class C at 5.18%, Class D at 5.91%, and Class E at 9.20%.

"This transaction reflects the continued strength of our platform and our ability to deliver for both our investors and members," said Paul Appleton, Interim Chief Financial Officer at Oportun, according to the press release. While the company reported negative earnings in the last twelve months, InvestingPro data suggests net income growth is expected this year, with analysts forecasting a return to profitability. Discover more insights about Oportun’s financial outlook in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Jefferies served as the sole structuring agent and co-lead, with Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, and Natixis Corporate & Investment Banking also serving as co-leads.

The company also reported it has proactively paid down $10 million of higher cost corporate debt since the end of the second quarter. This payment reduces the initial October 2024 balance of $235 million on its corporate financing facility to $212.5 million, with $27.5 million in mandatory payments due by January 2026. With total debt standing at $2.76 billion, this debt reduction initiative comes at a time when the stock appears slightly undervalued according to InvestingPro’s Fair Value analysis.

The notes were offered pursuant to Rule 144A under the Securities Act of 1933.

In other recent news, Oportun Financial Corp reported its Q2 2025 earnings, exceeding analysts’ expectations for earnings per share. The company posted an adjusted EPS of $0.31, which was higher than the forecasted $0.23, marking a 34.78% surprise. However, Oportun Financial experienced a slight revenue shortfall, with actual revenue reaching $234 million, falling short of the anticipated $240 million. Despite the revenue miss, the earnings beat was a significant highlight for the company. Analyst firms have not publicly released any upgrades or downgrades following this earnings report. These developments indicate the company’s ability to manage its earnings effectively, even in the face of revenue challenges. Investors may find the earnings performance noteworthy in the context of the company’s broader financial strategy.

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