$217M Represents the Strongest Credit Profile of CommonBond Collateral to Date
NEW YORK, Jan. 28, 2020 - CommonBond, a leading financial technology company, today announced the completion of its latest securitization totaling $217 million in loans. The securitization received AAA ratings from Moody's and DBRS, continuing the company's track record of AAA-rated transactions.
The transaction was CommonBond's ninth and brings the company's total securitized loan amount to $2.1 billion. Goldman Sachs served as structuring agent, co-lead manager, book-runner, and co-sponsor for this securitization. Barclays, Citi, BMO and Guggenheim Securities also served as co-lead managers and book-runners on the transaction.
The structure included a unique feature called "prefunding," which enables CommonBond to add loans to the securitization after its initial close. CommonBond prefunded $43 million worth of loans as part of the deal. The company was the first private lender to prefund a student loan refinance securitization back in 2018.
"We're very pleased to continue seeing strong performance in our deals and robust market receptivity to our AAA-rated bonds," said Sam Luk, Head of Capital Markets at CommonBond. "Another successful transaction utilizing the pre-funding structure provides investors with more size, while at the same time, adds flexibility to our funding model."
This securitization follows significant expansion for the company. In 2019, the company grew revenue by more than 40%, and its largest business unit was profitable. The company has raised $130 million to date and continues to be known for its customer acquisition costs as a fraction of industry peers and its credit quality as best in class. In recognition of its DNA of innovation, Fact Company named CommonBond one of the World's 50 Most Innovative Companies in 2018, and TIME Magazine named CommonBond one of its 50 Genius Companies the same year. To date, the company has reached over 250,000 users in its consumer business and over 300 corporate clients in its enterprise business.
CommonBond is a leading financial technology company that offers a suite of student loan-based solutions to consumers and enterprises. Consumers benefit from more affordable, transparent, and simple ways to pay their student loans. Enterprises benefit from tech-forward customer acquisition and engagement capabilities to scale their businesses with Millennials and Gen Z customers and employees.
To date, CommonBond has funded over $3 billion in loans, reached over 250,000 users and partnered with over 300 corporate clients. CommonBond is 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 www.commonbond.co.