Davidson Kempner Capital Management LP, Atalaya Capital Management, Nelnet, Inc. and Värde Partners Join Growing list of Marketplace Loan Investors Seeking Competitive Yield
SAN FRANCISCO, Nov. 9, 2023 /PRNewswire/ -- LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank ("LendingClub"), America's leading digital marketplace bank, today announced it crossed $1 billion of personal loans sold through its Structured Loan Certificates Program ("SLCLC Program"). The company anticipates approximately $2 billion dollars of loan volume through the SLCLC Program over the next 6 months as it continues to scale.
LendingClub's Structured Loan Certificates Program is a two-tranche private securitization in which LendingClub retains the senior note and sells the residual certificate on a pool of loans to a marketplace investor at a predetermined price, effectively providing built-in financing.
This structure, developed by LendingClub and enabled by its marketplace bank model, delivers a transaction that benefits both marketplace investors and LendingClub. Marketplace investors earn compelling levered returns with low friction and low-cost financing on a liquid security, and LendingClub earns an attractive yield with remote credit risk. The program has expanded rapidly since its April 2023 launch, allowing LendingClub to generate sizable certificate purchases from several investors who are new to the LendingClub platform. Investment funds advised by Davidson Kempner Capital Management LP served as anchor investor on the first series transactions, with Atalaya Capital Management, Nelnet, Inc. and Värde Partners joining as subsequent investors, and J.P. Morgan Securities LLC as settlement facilitator for the securities.
"Structured certificates are just one example of how we're using our bank capabilities to benefit our members, our marketplace investors, and our business," said Clarke Roberts, General Manager, Marketplace at LendingClub. "Our marketplace bank model sets us apart from the competition. No other industry player offers both high-quality personal loans and streamlined financing. Listening and responding quickly to investor needs is essential to our marketplace, and the product's rapid adoption with investors who are new to the LendingClub platform is confirmation that we're on target and leading the industry forward."
"As an entrepreneurial firm, we're excited to partner with LendingClub on its latest innovative structure," said Justin Burns, Managing Director from Atalaya Capital Management. "The Structured Loan Certificates program provides us both efficient leverage and scalable access to personal loans from a provider of choice in the asset class. We moved quickly to take advantage of the new opportunity and are glad to be a new partner for LendingClub."
Throughout its 15-year history, LendingClub has offered a range of industry-first, unique product structures to expand investor access to consumer credit, broaden distribution, and improve liquidity for all investors.
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC. LendingClub Bank is the leading digital marketplace bank in the U.S., where members can access a broad range of financial products and services designed to help them pay less when borrowing and earn more when saving. Based on more than 150 billion cells of data and over $90 billion in loans, our advanced credit decisioning and machine-learning models are used across the customer lifecycle to expand seamless access to credit for our members, while generating compelling risk-adjusted returns for our loan investors. Since 2007, more than 4.7 million members have joined the Club to help reach their financial goals. For more information about LendingClub, visit https://www.lendingclub.com.
Safe Harbor Statements
The series notes and residual certificates issued in the LendingClub Structured Certificates Program have not been and will not be registered under the Securities Act of 1933 or any state or other jurisdiction's securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and applicable state or other jurisdictions' securities laws.
This press release will not constitute an offer to sell or the solicitation of an offer to buy the series notes or residual certificates or any other securities, nor will there be any offer, solicitation or sale of the series notes, the residual certificates or any other securities in any state or other jurisdiction in which the offer, solicitation or sale would be unlawful.
Some of the statements above, including statements regarding the performance and growth of the SLCLC Program, 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-looking statements include LendingClub's ability to continue to attract and retain new and existing borrowers and platform investors, the macroeconomic environment, default rates and those factors set forth in the section titled "Risk Factors" in LendingClub Corporation's most recent Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, as well as in subsequent filings by LendingClub Corporation with the Securities and Exchange Commission. 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.
Contact:
For Investors: IR@lendingclub.com
Media Contact: Press@lendingclub.com
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SOURCE LendingClub Corporation
