KENNESAW, Ga.--(BUSINESS WIRE)--LendingPoint, an AI-driven CreditTech platform, today announced the closing of its second rated consumer loan ABS securitization in 2021: LendingPoint 2021-B Asset Securitization Trust (“LDPT 2021-B”), which was $400 million in size and backed by a pool of unsecured, direct-to-consumer loans. Following two weeks of heavy new issue supply volatility, LendingPoint 2021-B executed at a duration-weighted average coupon of 2.32%; this is similar to the execution of LendingPoint 2021-A Asset Securitization Trust (“LDPT 2021-A”) which priced in July 2021 at a duration-weighted average coupon of 2.16%. At the time of execution, LDPT 2021-A represented the largest unsecured consumer loan ABS issuance from a single marketplace platform brought to market since the onset of the global pandemic.
Since 2017, LendingPoint has issued more than $3.625 billion of rated and unrated securitizations across 15 transactions.
Credit Suisse Securities (USA) LLC and Guggenheim Securities served as joint bookrunners on LDPT 2021-B, and Credit Suisse Securities (USA) LLC also served as sole structuring agent. The transaction involved the issuance of four classes of notes, which were rated A- (sf), BBB- (sf), BB- (sf), and B (sf) by KBRA and provided for a 95% advance rate. The notes priced at a blended spread of +194 over 1.46-year interpolated swaps, resulting in a duration-weighted coupon of 2.32% per annum. There were 19 investors in total — including four first-time investors in LendingPoint’s ABS program.
Originations on LendingPoint’s platform have more than doubled in the first nine months of 2021 compared with the first nine months of 2020. LendingPoint’s Chief Capital Officer Victor J. Pacheco stated, “The strength, accuracy, and predictability of our AI-driven credit and pricing models, along with the work of Credit Suisse Securities (USA) LLC and Guggenheim Securities, enabled us to attract a wide range of institutional investors in our most recent transaction and execute at almost record low yields for LendingPoint even in this busy and volatile market. Our ABS capital markets investors, along with our forward flow, whole loan buyers, are each an important part of our funding, growth, and profitability strategy. Each allows us to move into new origination channels and expand our product offerings while maintaining consistently strong growth in revenue and net income.”
LendingPoint is an AI-driven, CreditTech platform that provides financing origination solutions to consumers, to ecommerce and point of sale partners, and to other lending institutions. The company’s fraud prevention as well as its risk and asset management algorithms are used to create financing opportunities across the credit spectrum. In addition, the LendingPoint Merchant Solutions platform provides ecommerce platforms, merchants, and other service providers with fully integrated, one-stop financing solutions to convert more customers.
For the past three years, LendingPoint has been named to Inc. 5000’s list of fastest-growing private companies. LendingPoint ranked on Deloitte’s Technology Fast 500 list in 2019 and 2020 and was honored as one of the top 40 fastest growing companies in Atlanta by the ACG in 2019, 2020, and 2021. LendingPoint was named one of the 2021 Best Places to Work by the Atlanta Business Chronicle. LendingPoint is a privately held company headquartered in Metro Atlanta, with offices in San Mateo and New York. LendingPoint, LLC owns and operates the LendingPoint platform.