Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

LendingClub Closes Second Self-Sponsored Securitization to Further Expand Investor Access

LC

Market leader sponsors, services, administers and contributes to $323.1 million prime transaction backed by consumer loans

PR Newswire

SAN FRANCISCO, Sept. 28, 2017 /PRNewswire/ -- Today LendingClub (NYSE: LC), America's largest online marketplace connecting borrowers and investors, has sponsored and contributed to its second securitization deal. The Consumer Loan Underlying Bond (CLUB) Credit Trust 2017-P1 (CLUB 2017-P1) issued $323.1 million in prime notes backed by consumer loan assets facilitated through the LendingClub platform. This is the sixth securitization supported or sponsored by LendingClub, and the fourth rated securitization of LendingClub facilitated loans overall.

Lending Club, the world's largest online marketplace connecting borrowers and investors. (PRNewsFoto/Lending Club) (PRNewsFoto/Lending Club)

"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, Chief Financial Officer. "This securitization demonstrates our continued commitment to our investors and the strong market demand for our asset."

This transaction was backed by approximately $350 million of collateral and includes $217.3 million of Class A notes rated "A-(sf)", $51.0 million of Class B notes rated "BBB (sf)" and $54.7 million of Class C notes rated "BB (sf)". All ratings were assigned by Kroll Bond Rating Agency, Inc. Each tranche of notes was oversubscribed by a diverse set of investors, 10 of whom were new to investing in assets facilitated by LendingClub. Citi and JP Morgan acted as lead underwriters.

"I'm incredibly pleased with our team and its execution of this deal. Committing our own funds demonstrates skin in the game and we were able to expand our reach to 10 investors who previously did not have exposure to LendingClub facilitated loans, including insurance companies, mutual funds and other large asset managers," said Patrick Dunne, Chief Capital Officer of LendingClub. "The broad distribution of notes shows how mature this asset class has become as more investors access our consumer loan marketplace."

About LendingClub
LendingClub was founded to transform the banking system to make credit more affordable and investing more rewarding. Today, LendingClub's online credit marketplace connects borrowers and investors to deliver more efficient and affordable access to credit. Through its technology platform, LendingClub is able to create cost efficiencies and passes those savings onto borrowers in the form of lower rates and to investors in the form of solid returns. LendingClub is based in San Francisco, California.

Safe Harbor Statement

Some of the statements above, including statements regarding investor demand, our ability to access the securitization markets in the future and our potential for future growth are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward statements include: the outcomes of pending governmental investigations and pending or threatened litigation, which are inherently uncertain; the impact of management changes and the ability to continue to retain key personnel; ability to achieve cost savings from recent restructurings; LendingClub's ability to continue to attract and retain new and existing retail and institutional investors; competition; overall economic conditions; conditions in the market for securitizations; demand for the types of loans facilitated by LendingClub; default rates and those factors set forth in the section titled "Risk Factors" in LendingClub's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, each filed with the SEC. LendingClub may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. LendingClub does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Information in this press release is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Additional information about LendingClub is available in the prospectus for LendingClub's member payment dependent notes, which can be obtained on LendingClub's website at https://www.lendingclub.com/info/prospectus.action.

 

View original content with multimedia:http://www.prnewswire.com/news-releases/lendingclub-closes-second-self-sponsored-securitization-to-further-expand-investor-access-300527745.html

SOURCE LendingClub



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today