By Daniel Lanyon on 23rd August 2016
In the summer lull online marketplace lending platform Avant shows institutions are still backing the nascent industry.
US short-term consumer loan platform Avant has closed two new securitisations including a $255m asset-backed deal and the renewal of its $392m warehouse facility held by J.P. Morgan and Credit Suisse.
The three tranche AVNT 2016-C securitisation transaction includes Class A, B and C fixed-rate notes that were rated A-, BBB- and BB by Kroll Bond Rating Agency. Credit Suisse served as the lead bookrunner with J.P. Morgan and Morgan Stanley serving as joint bookrunners.
The ABS deal was strongly received by investors and was significantly oversubscribed. The transaction will provide debt financing for Avant's core U.S. instalment loan business.
Avant has originated more than $3bn of loans on its platforms, although dwindling growth in loan origination was reason cited for a move to cut 7 per cent of its workforce in May, with more than 60 job losses.
Al Goldstein, chief executive officer of Avant said: "We tremendously value the strong ongoing partnerships we have with our lead investment banks and are extremely pleased that we had over 30 investors in the 2016-C bond offering, which include many of the largest and most sophisticated global bond investors.”
“We have and will continue to devote significant resources to expanding and diversifying our on and off-balance sheet funding strategies and appreciate the resourcing support that this bond transaction requires,"
"Our hybrid funding strategy places Avant in a position of strength to become the leader in the online lending category over the long-term."
J.P. Morgan and Credit Suisse will also continue to serve as senior lenders for the $392 million revolving warehouse facility. The warehouse will provide Avant with additional capital to continue serving its growing base of more than 500k customers, the firm said.
To date, Avant has raised a total of $659 in equity financing and maintains $1.3b of capacity in its debt facilities. In addition to J.P. Morgan and Credit Suisse, Avant counts Tiger Global Management, August Capital, Victory Park Capital, KKR, DFJ Growth and RRE Ventures among its equity and debt investors.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.