Securitization Receives AAA Rating from Moody's and DBRS, Broadens Investor Base
NEW YORK, Aug. 3, 2018 -- CommonBond, a leading financial technology company that helps students and graduates pay for higher education, today announces its second AAA-rated securitization from Moody's and DBRS. At $292 million of total collateral, the transaction is CommonBond's largest to date.
The securitization was CommonBond's second of 2018 and seventh overall, bringing the company's total securitized loan amount to over $1.5 billion. A mix of new and pre-existing investors participated in the transaction. 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.
"Our recent securitization continues the company's track record of strong credit performance and consistent growth," said Sam Luk, head of capital markets at CommonBond. "We continue to generate high-quality assets, which has encouraged the expansion of our investor base. We also remain committed to serving as a programmatic issuer, and consistently providing best-in-class products to consumers, partners, and investors."
Independent of this securitization, Moody's recently upgraded six senior tranches in three CommonBond securitizations to AAA ratings. Additionally, DBRS upgraded 12 tranches in four securitizations this spring.
This securitization coincides with continued growth for CommonBond and its three business lines: loans for current students, refinance loans for graduates, and its CommonBond for Business™ student loan benefits platform for employers. The company announced a $50 million Series D equity funding round in March and has secured over $3 billion in lending capacity. Fast Company named CommonBond one of the World's 50 Most Innovative Companies for 2018.
CommonBond is a financial technology company on a mission to give students and graduates more affordable, transparent, and simple ways to pay for higher education. The company offers 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 $2 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 www.commonbond.co.