AAA Rating Testament to the Company’s Underwriting and
Consistent Business Performance
NEW YORK, NY – May 13, 2022 – (Motor Sports NewsWire) – Octane® (Octane Lending Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $375 million securitization (“OCTL 2022-1”) collateralized by its fixed-rate installment powersports and outdoor power equipment loans. This transaction follows a period of sustained growth and marks the company’s fifth securitization since launching the program in December 2019.
OCTL 2022-1 issued one money market eligible tranche, the Class A-1 notes, and five longer-term fixed-rate tranches, including the Class A-2, B, C, D, and E notes, all of which Kroll Bond Rating Agency (KBRA)* and Standard & Poor’s (S&P)** rated as K1+(sf)/NR, AAA(sf)/AA(sf), AA(sf)/AA-(sf), A(sf)/A(sf), BBB(sf)/BBB(sf), and BB+(sf)/BB+(sf), respectively in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. Additionally, Octane was able to secure an upsize of the transaction from an initial target issuance of $275 million to $375 million in notes, making this issuance Octane’s largest asset-backed securitization transaction to date. J.P. Morgan acted as lead bookrunner and structuring agent, with Credit Suisse and Truist Securities as joint bookrunners.
“The AAA rating and our ability to attract such notable institutional investment partners showcase the strength and resilience of our business, particularly within today’s volatile market environment,” said Steven Fernald, Chief Financial Officer at Octane. “We are now even better positioned to continue our growth as we connect people with their passions and make buying fast, easy, and accessible.”
This issuance comes during a period of sustained success for the company. During the first few months of 2022, Octane showed strong momentum in originations; significantly expanded its…
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