LendingClub presses ahead with securitisation programme

By Ryan Weeks on Friday 29 September 2017

Alternative Lending

US marketplace lending leader closes second self-sponsored securitisation.

LendingClub is sticking to its new securitisation strategy. The company has closed a $323.1m deal, backed by its consumer loans. LendingClub sponsored, serviced, administered and contributed to the deal, in line with the strategy implemented earlier this year.

The senior tranche of the Consumer Loan Underlying Bond (CLUB) Credit Trust 2017-P1 (CLUB 2017-P1), as it is snappily referred to, has been rated A-(sf) by Kroll Bond Rating Agency. The top tranche is comprised of $217.3m of class A notes. The B notes were rated BBB (sf) while the C notes were assigned a BB (sf) rating.

LendingClub says that each of the three tranches were oversubscribed by a diverse set of investors, including 10 newcomers. Citi and JPMorgan were lead underwriters on the bond.

“The broad distribution of notes shows how mature this asset class has become as more investors access our consumer loan marketplace,” said the platform’s chief capital officer Patrick Dunne. He suggested in statement that LendingClub’s decision to commit its own funds to the deal was key to bringing in the new investors, none of which had held exposure to LendingClub loans previously.

LendingClub closed its first self-sponsored securitisation in June – a $279.4m deal which marked the start of a securitisation programme in which it would act as sponsor, servicer and administrator.

"After the successful execution of our inaugural securitization in the second quarter and the tremendous demand we observed, we continue to expand our investor universe with our second securitization by creating a consistent, repeatable program, at scale for our contributing investors," said Tom Casey, LendingClub's chief financial officer.

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