REDWOOD CITY, Calif.--(BUSINESS WIRE)--Oportun, formerly known as Progreso Financiero, a mission-driven financial services company serving the credit needs of the growing Hispanic market, announced two separate financial transactions today. The Company closed in January, 2015, its third securitization, an issuance of $112 million of two-year, asset-backed bonds secured by a pool of its installment loans. Further, Oportun announced the completion of a $70 million whole loan flow sale program which closed in November, 2014. As part of the loan sale, Oportun retains all rights and obligations involving the servicing of the loans.
"Our advanced data analytics and technology enable us to accurately identify thin and no file applicants who are able and willing to repay loans matched to their circumstances. These distinct transactions validate our approach to providing affordable and accurately underwritten small dollar loans for the financially underserved,” said Oportun CEO Raul Vazquez.
The bonds, which were not rated, were placed with a diversified mix of institutional investors in a private offering. Jefferies LLC served as the sole book running manager for Oportun. Oportun issued its first securitization in June 2013.
The purchaser of the loans pursuant to the 12-month flow agreement is Ellington Financial LLC (NYSE: EFC), a specialty finance company externally managed by an affiliate of Ellington Management Group, an investment manager with over $6 billion in assets under management. The sale further diversifies Oportun’s range of funding sources.
Oportun, which was recently named to the Forbes list of America’s Most Promising Companies, charges lower fees and interest rates than widely available alternatives. Since its founding, Oportun has loaned over $1.3 billion to more than 485,000 customers.
The company announced in January that it will transition to the name Oportun over the coming months as it shares the new name with customers and business partners. The name change will be completed by year’s end.
For more information about Oportun, including the name change, please visit http://www.oportun.com.
Oportun is a mission-driven, financial services company that uses advanced data analytics to provide responsible credit to thin file or no file underserved Hispanic communities. Oportun’s technology determines every applicant’s ability to repay and enables back-office efficiency. The company delivers a very supportive and welcoming service experience with bilingual staff across channels and operates more than 130 locations in CA, IL and TX. In early 2015 the company announced plans to transition over the year from Progreso Financiero to Oportun.