Mercury® Financial closes $950 million inaugural securitization issuance

WILMINGTON, Del. & AUSTIN, Texas--(BUSINESS WIRE)--Mercury® Financial LLC (Mercury® Financial), the largest non-bank credit card company in the U.S., has completed the sale of $950 million in credit card asset-backed securities (ABS) in its inaugural issuance from the Mercury Financial Credit Card Master Trust, Series 2021-1 (MFCCMT 2021-1, the Issuer).

Proceeds from the sale will be used to refinance the Company’s existing funding facility and for continued growth of the business. The deal was initially sized at $750 million, but the offering was significantly oversubscribed with orders from over 40 investors, allowing the Issuer to increase the size to $950 million to accommodate more investor demand.

The transaction underscores investors’ confidence in Mercury® Financial’s proprietary platform and customer-experience-based business model — which seeks to empower underserved yet attractive cardholders with credit solutions — and the Company’s ability to fund growth.

“Access to the capital markets is a core underpinning for our growth plans. The success of the ABS offering confirms our optimism around our business model. The level of investor interest reflects the market’s confidence in our vision,” says Steve Carp, Chief Financial Officer at Mercury® Financial. “There’s a real opportunity in the market for this type of investment. We strongly believe our operations, customer service and purpose-driven mission is a solid foundation for investors seeking to diversify into new asset classes.”

The capital markets, in spite of the COVID-19 pandemic, are very healthy, as Carp weighed in on the decision to go to the market with this issuance now. “The timing was based on strong market sentiment, our attractive risk-reward tradeoff for the investor base, and our corporate outlook as we ramp up originations to meet our growth objectives. As a programmatic issuer, we will continue building a foundation for growth through a strong funding program that continues to access the markets,” he says.

The deal, rated by the Kroll Bond Rating Agency, was jointly led by Credit Suisse Securities (USA) LLC and Guggenheim Securities, LLC as bookrunners with Barclays Capital Inc. serving as co-manager.

The transaction comes on the heels of the Company’s other notable announcements, including rebranding their franchise as Mercury® Financial earlier in March, and raising $100 million in incremental capital to support accelerated acquisition of new card accounts and expansion of the platform.

About Mercury® Financial

Mercury® Financial (the “Company”) is the largest non-bank credit card company in the United States, and is led by CEO James Peterson, and a seasoned management team with decades of experience at major banks. Mercury® Financial’s purpose-driven mission is to help our customers manage their credit responsibly, so they can enjoy the benefits of having better credit and better lives. Mercury® Financial provides fair and transparent credit card offerings that target consumers through direct mail, digital affiliates, email origination channels and co-branded partnerships. To date, the Company has extended $2.5 billion in credit lines and helped nearly a million customers with a credit card that earns rewards, carries no monthly fee for issuance or availability, and has an affordable APR.

Mercury® Financial has created a data and tech-centric credit card origination and servicing platform uniquely positioned to identify and attract the near-prime consumer segment to fast-track new account growth. The Company has recently originated well over 200,000 new accounts utilizing this sophisticated servicing platform. With offices in Wilmington, Delaware and Austin, Texas, the Mercury® Financial team is committed to offering simple and easy to understand credit cards with the tools and flexibility that provide premium value to its customers.

Värde Partners, a leading global alternative investment firm with deep experience in consumer finance, is the largest investor in Mercury® Financial. Värde Partners manages over $14 billion on behalf of a global investor base.

The Mercury® Mastercard^® is issued by First Bank & Trust, Brookings, SD pursuant to a license by Mastercard^® International Incorporated and managed by Mercury® Financial.

Mastercard® is a registered trademark, and the circles design is a trademark of Mastercard® International Incorporated.