Oportun completes $538 million asset-backed securitization

Oportun Financial Corporation (NASDAQ: OPRT) completed a $538 million asset-backed securitization of installment loans with a 5.294% average yield, the company announced.

The offering consisted of five classes of fixed-rate notes backed by unsecured and secured installment loans. Fitch Ratings assigned AAA ratings to the Class A notes, with lower ratings for subsequent tranches ranging from AA- to BB-.

The Class A notes carried a 4.49% coupon, while Class B through E notes had coupons of 4.93%, 5.18%, 5.91%, and 9.20% respectively. The weighted average coupon on the transaction was 5.23%.

Jefferies served as sole structuring agent and co-lead manager, alongside Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, and Natixis Corporate & Investment Banking as co-leads.

"This transaction reflects the continued strength of our platform and our ability to deliver for both our investors and members," said Paul Appleton, Interim Chief Financial Officer at Oportun. "Earning a second AAA rating on our senior notes and pricing 38 basis points better than our June deal demonstrates strong demand for Oportun's asset-backed securities."

The yield represents a 38 basis point improvement compared to Oportun's previous asset-backed securities financing in June. The company also paid down $10 million of corporate debt since the second quarter ended, reducing its corporate financing facility balance from an initial $235 million in October 2024 to $212.5 million.

The notes were offered under Rule 144A of the Securities Act of 1933. Oportun has $27.5 million in mandatory corporate loan payments due by January 2026.

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