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


 

SoFi completes largest consumer loan securitization, rolls back asset management ambitions




By Daniel Lanyon on 13th November 2017

https://goo.gl/N7hGbi

The San Francisco-based alternative lending platform is streamlining plans as it transitions to new management.

 

SoFi has closed a $727m issuance of its SoFi Consumer Loan Program 2017-6 ("SCLP 2017-6") notes.

 

The San Francisco based firm has had a somewhat testing six months or so, despite continued growth in its loan originations, securitizations aplenty and a push into robo advice-style wealth management and consumer banking.

 

After announcing its banking ambitions back in June, it has since cancelled them after also seeing its CEO and founder Mike Cagney step aside following sexual harassment allegations and is also stepping back from a planned move into asset management.

 

Therefore this latest transaction, SoFi's largest offering of securities backed by consumer loans, is welcome good news for its investors. It is the company's 11th ABS transaction this year, bringing SoFi's total issuance for 2017 to $6.1bn.

 

SoFi is now one of the 10 largest US sponsors of asset-backed securities, completing 14 deals over the past year totalling $6.5bn. Rating agencies have raised their ratings on 12 previous SoFi securitizations, reflecting the strong performance of the underlying loans, the firm said in a statement.

 

Joint lead managers on SCLP 2017-6 were J.P. Morgan, Deutsche Bank, Goldman Sachs, and Mizuho Securities.

 

"SoFi's securities have performed well in the market, and investor demand for this offering was strong with over $2.2bn of orders," said Erica Dorfman, Vice President of Capital Markets for SoFi. "There were 39 investors in this deal, including five new institutions."

Comments


Enter your name:

Enter a comment in the box below: