SAN CARLOS, Calif. - Oportun Financial (NASDAQ:OPRT) Corporation (NASDAQ:OPRT), a financial technology company, has completed an issuance of $200 million in fixed-rate asset-backed notes. The notes, secured by a mix of unsecured and secured installment loans, were divided into four classes: Class A, Class B, Class C, and Class D.
Kroll Bond Rating Agency (KBRA) assigned ratings to each class of notes, with Class A receiving AA-, Class B A-, Class C BBB-, and Class D BB-. The notes were acquired by four initial purchasers: Morgan Stanley, Goldman Sachs & Co (NYSE:GS). LLC, J.P. Morgan Securities LLC, and Jefferies, with Morgan Stanley acting as the sole structuring agent and bookrunner, while the latter three served as co-managers.
The weighted average coupon rate for the transaction stands at 8.434%. Notably, the Class A notes carry a coupon of 6.334% per annum, Class B 6.546%, Class C 7.421%, and Class D 12.072%. The pricing and demand of this securitization reflect investor confidence in the credit quality of Oportun's consumer loans and its business model, according to Jonathan Coblentz, Oportun's Chief Financial Officer.
The successful closure of this deal is aimed at bolstering Oportun's profitability in the current market while supporting its mission to assist its members in improving their financial futures. Oportun, which serves 2.1 million members, has provided over $17.2 billion in credit since its inception, claiming to have saved members more than $2.4 billion in interest and fees.
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