Online lender's second securitization oversubscribed among name-brand investors
NEW YORK, April 25, 2016 /PRNewswire/ -- CommonBond, a leading tech-enabled lender, today announced it has completed a $150 million securitization of student loan assets co-led by Barclays and Goldman Sachs. The transaction received a rating of "A (high)" from DBRS. Purchasers of the assets were institutional investors that included insurance companies, banks, credit funds and asset managers.
"The strong reception in the capital markets to our second securitization is a further testament to the quality of CommonBond's portfolio, especially in today's uncertain market environment," said Morgan Edwards, Chief Financial Officer of CommonBond. "As investors increasingly look toward high-quality assets, CommonBond stands out for its diligent underwriting and the fact that we have no defaults among our borrower base."
Barclays served as co-lead manager and structuring agent for the transaction, and Goldman Sachs served as co-lead manager. The past year has been one of strong growth for CommonBond. In June 2015, the company completed its first securitization, a $100 million investment-grade transaction, and expects to issue more securitizations. In January 2016, the company announced it had raised more than $625 million in total funding across equity and debt financing. CommonBond is on track to surpass $1 billion in loans funded in 2016.
CommonBond is a leading tech-enabled consumer lender that currently focuses on funding and refinancing student loans. The company combines proprietary technology, sophisticated underwriting, friendly customer service and a commitment to social good to deliver a superior borrowing experience. The company saves its members an average of more than $14,500 over the life of the loan. CommonBond is the first company to bring the "one-for-one" social model to finance: for every loan funded on its platform, CommonBond funds the education of a student in need, through a partnership with Pencils of Promise. For more information, visit https://www.commonbond.co.