AltFi.com uses cookies on this website. They help us to know a little bit about how you use our website, which improves the browsing experience and marketing - both for you and for others. They are stored locally on your device. By continuing to use this site you accept this use of cookies. Go to the Privacy and Cookies page for more information. You'll see this message only once.
Not signed in. Log in here.

Your daily download of all things alternative finance and fintech, from us at AltFi


 

LendingClub closes landmark $279.4m securitisation




By Ryan Weeks on 26th June 2017

Source: https://goo.gl/giU8TL

Leading marketplace closes first self-sponsored securitisation.

 

LendingClub, one of the world’s largest marketplace lenders, has closed its first self-sponsored securitisation. The $279.4m deal was backed by consumer loans that were facilitated by the LendingClub platform.

 

The senior tranche of the transaction was rated “A- (sf)” by Kroll. $162.4m of these Class A notes were issued. There were also $41.2m of Class B notes, rated “BBB (sf)” by Kroll, and $75.7m of Class C notes, which were rated “BB (sf)”. LendingClub has said that each tranche of the deal was oversubscribed by a diverse set of investors, most of which were new investors for the company.

 

This is the fifth securitisation to be backed by LendingClub loans, and the third to be rated. However, it also marks the start of LendingClub’s securitisation programme as a sponsor, servicer and administrator.

 

The newly-formed Consumer Loan Underlying Bond (CLUB) NP Credit Trust 2017-NP1 (CLUB 2017-NP1) was the issuer of the notes. LendingClub expects to sponsor more securitisations using the CLUB structure going forwards, and has said that this could provide ABS investors with greater consistency, standardisation, consistency and efficiency for the long-term.

 

"I'm very pleased with our execution. We're broadening our platform to tap into a large and liquid ABS market and with this deal we've reached 20 new investors, including insurance companies and large asset managers who are looking for new ways to access the platform," said Patrick Dunne, chief capital officer of LendingClub. "This transaction also demonstrates a capital markets financing alternative for the portfolios of our existing investors, which may provide better pricing transparency and enhanced liquidity."

 

Citi and JP Morgan were lead underwriters on the deal, with BNP and Jefferies acting as co-managers. 

 

Comments


Enter your name:

Enter a comment in the box below: