Upgrade completes $282m securitisation

By Daniel Lanyon on 1st November 2018

P2P/Marketplace Lending

Credit Suisse and Jefferies served as lead underwriters on the transaction.

Upgrade completes $282m securitisation

Upgrade, the marketplace lending platform founded by ex-Lending Club CEO Renaud Laplanche, has closed its inaugural securitisation of personal loans.

The Upgrade Receivables Trust 2018 issued approximately $282m in notes to nearly 20 banks and asset managers.

Launched in 2016,  the platform offers personal loans and personal credit lines. It has raised $142m in equity capital and facilitated over $1bn in loans since launch.

This transaction is the first in Upgrade’s securitization program, designed as a quarterly issuance program. Credit Suisse and Jefferies acted as joint lead underwriters, and Upgrade served as sponsor, servicer and administrator for the transaction.

Laplanche, who exited Lending Club in April 2016 amid a cloud of scandal, says Upgrade’s securitisation program is designed to provide liquidity and a lower cost of funds to its loan buyers through a standardized issuance program.

“We believe this rated securitization program is the ideal complement to our marketplace approach whereby banks and asset managers can buy consumer loans and personal credit line balances on an on-going basis.”

The Upgrade Receivables Trust securitisation was rated by Kroll Bond Rating Agency and includes $184.5m of Class A notes rated "A (sf)", $32.1 million of Class B notes rated "BBB (sf)", $28.0 million of Class C notes rated "BB (sf)" and $37.5 million of Class D notes rated “B (sf).

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