Octane has closed a $406.9 million securitization collateralized by its fixed-rate installment powersports loans. This is the largest of Octane’s seven transactions to date and the first to receive a AAA rating from Standard & Poor’s and Kroll Bond Rating Agency (KBRA).
Through the loan securitization, the company added seven new investors. Because of significant investor demand, Octane increased the transaction from an initial $305.2 million target to $406.9 million in notes.
“We are pleased and grateful to see such strong interest from our institutional investor partners, particularly in the current market environment, and will leverage their support to bring our fast, easy buying experience to even more customers,” said Steven Fernald, Octane chief financial officer. “Our capital markets strategy is one of Octane’s many differentiators and we will continue to build on the strength of both our program and underlying business in the future.”
The company has now completed nearly $2.3 billion of asset-backed securitizations since launching the program in December 2019.
Truist Securities acted as lead book runner and structuring agent, with J.P. Morgan as joint bookrunner.
