Today data and technology platform LendingPoint announced the closing of two securitizations of both direct-to-consumer and point-of-sale loans. LendingPoint Receivables Trust 2020-1 (“LDPT 2020-1”) issued $200 million of rated notes backed by a pool of $210.5 million of direct-to-consumer loans originated on the LendingPoint platform. LPMS 2020-1, an unrated securitization backed by point-of-sale loans, issued $45.8 million of notes with a weighted average yield of 4.910%.
Kroll Bond Rating Agency, Inc. (KBRA) assigned preliminary ratings to four classes of notes issued totaling $200.0 million by LendingPoint 2020-1 Asset Securitization Trust, a consumer loan ABS transaction. These transactions represent LendingPoint’s third (3rd) KBRA rated securitization of non-prime unsecured consumer loans and second (2nd) unrated securitization of point-of-sale loans.
“By combining our unique technology platform and proprietary algorithms, we have been able to successfully provide needed credit products to consumers directly, as well as through our merchant partners at the point of sale. Our success in the ABS market helps ensure that we can continue to scale our business profitably while democratizing commerce through expanded credit access and accelerating commerce by facilitating more transactions for our merchant partners,” said LendingPoint CEO Tom Burnside.
“For our company, the strong execution of these securitizations solidifies our success in the market with both direct-to-consumer and point-of-sale loans. We’re pleased with the strong reception we’ve received in the ABS market and look forward to continuing our securitization program throughout 2020 and beyond,” said Victor Pacheco, LendingPoint’s Chief Capital Officer.
KBRA’s ratings for LP 2020-1 include A- for $113.789 million Class A notes, BBB- for $34.000 million Class B notes, BB- for $29.684 million Class C notes, and B- for $22.527 million Class D notes. The Class A notes represent 54.05% of the pool balance with a 2.526% yield. The Class B notes are 16.15% of the pool balance with a 3.128% yield. Class C were 14.10% of the pool balance with a 4.179% yield, while the Class D notes represent 10.70% of the pool balance, with a 6.408% yield. The blended yield on the notes is 4.037% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5.0%.
LPMS 2020-1, the unrated POS transaction issued Class A, B and C notes. The Class A notes represent 75.15% of the pool balance with a 4.00% yield. The Class B notes are 12.20% of the pool balance with a 5.301% yield. The Class C were 7.65% of the pool balance with a 7.289% yield. The blended yield on the notes is 4.910% and the transaction has both an Overcollateralization Target and Overcollateralization Amount of 5.0%.
LendingPoint is a data and technology platform that enables origination of unsecured personal loans both direct to consumers online and at the point of sale for financial institutions and for its own balance sheet. The company uses its data algorithms and technology to create better lending and borrowing experiences by finding more reasons to say “yes” — democratizing credit across the credit spectrum by unlocking access to affordable loans. Its LendingPoint Merchant Solutions platform provides merchants and other service providers a fully integrated, one-stop retail financing solution to accelerate commerce by converting more customers at the point of sale.
In 2019, LendingPoint placed 17th on Inc. 5000’s list of fastest-growing private companies in the US; ranked 9th on Deloitte’s 2019 Technology Fast 500; was listed as one of the top 40 fastest growing companies in Atlanta by ACG; and the company’s CEO Tom Burnside was chosen as Entrepreneur of the Year Finalist Southeast by EY. LendingPoint was named in 2018 one of the nation’s best consumer loan companies by U.S. News & World Report, one of the Best Personal Loans by NerdWallet, and the fastest-growing private company in metro Atlanta by the Atlanta Business Chronicle. LendingPoint is a privately held company headquartered in Kennesaw, Ga., with offices in New York.