CommonBond Completes First AAA-Rated Securitization

Fintech Leader Prices $234M Student Loan Securitization; Moody’s and DBRS Give AAA Rating

NEW YORK (March 12, 2018) – CommonBond, a leading financial technology company that empowers students and graduates to pay for higher education, today announces its first AAA-rated securitization from Moody’s and DBRS for its senior notes. The securitization totaled $234M, on total collateral of $254M. 

The transaction was CommonBond’s sixth and brings the company’s total securitized loan amount to over $1.2B. Goldman Sachs served as structuring agent, co-lead manager, book-runner, and co-sponsor for this securitization. Barclays, Citi, and Guggenheim Securities also served as co-lead managers and book-runners on the transaction. 

“Achieving AAA status in six deals is a testament to the high credit quality and operational strength that CommonBond brings to the securitization market,” said David Klein, CommonBond CEO and co-founder. “Our goal has always been to provide best-in-class product to both sides of our market: great debt-reduction options for consumers and robust capital deployment options for investors. The strength of this transaction reflects our commitment to meticulous underwriting, minimal default rates, and high-quality assets. We expect to continue to programmatically issue high performing bonds to a deep and broad investor base over time.” 

The bonds priced inside of the company’s last securitization. The senior notes priced at +50 basis points, the B bonds priced at +80 basis points, and the C bonds priced at +120 basis points. On a total weighted average basis, this securitization priced at a 27-basis-point improvement from the company’s last deal. 

This securitization follows a period of significant growth for the company. In 2017, CommonBond experienced a 250 percent increase in revenue year-over-year and surpassed its net income target by more than $4M. Through the end of 2017, the company experienced only two credit defaults. Independent of this securitization, Moody’s is reviewing six senior tranches in three CommonBond securitizations for upgrade.

About CommonBond

CommonBond is a financial technology company on a mission to give students and graduates more transparent, simple, and affordable ways to pay for higher education. The company offers to refinance loans to college graduates, new loans to current students, and a suite of student loan repayment benefits to employees through its CommonBond for Business™ program. By designing a better student loan experience that combines advanced technology with competitive rates and award-winning customer service, CommonBond has funded over $1.5 billion in loans for its tens of thousands of members. CommonBond is also the first and only finance company with a "one-for-one" social mission: for every loan it funds, CommonBond also funds the education of a child in need, through its partnership with Pencils of Promise. For more information, visit

Press Contact 

Bethany Hill