Octane Completes $380 Million Asset-Backed Securitization – RVBusiness – Breaking RV Industry News

NEW YORK – Octane Lending Inc., the financial technolgy company facilitating the buying experience for major recreational purchases, announced in a press release that it has closed a $380 million securitization collateralized by its fixed-rate installment powersports and RV loans issued through its in-house lender, Roadrunner Financial Inc. This transaction is Octane’s ninth since launching the program in December 2019 and third of 2023. The company has completed more than $3 billion of asset-backed securitizations to date.

Octane delivers a seamless, end-to-end digital buying experience, connecting people with their passions by combining cutting-edge technology and innovative risk strategies to make lifestyle purchases – powersports vehicles, RVs, and outdoor power equipment – fast, easy and accessible, the release stated.

J.P. Morgan Securities acted as lead manager and structuring agent, with Truist Securities, ATLAS SP Partners, and Mizuho Americas serving as joint bookrunners. Despite a record amount of primary new issuance volume in the ABS market during the month of September, Octane saw strong demand for its paper, which allowed the banking syndicate to price at or inside of guidance.

Additionally, Octane continued to diversify its investor base while also maintaining the support of existing institutional investors.

“As we build on Octane’s strong capital markets program, a competitive advantage, we’re grateful for the support of our esteemed institutional investor partners,” said Steven Fernald, Chief Financial Officer at Octane. “This successful transaction will help fuel our continued growth as we connect people with their passions and make buying better.”

The senior class of notes in Octane’s first two asset-backed securitizations of 2023, OCTL 2023-1 and OCTL 2023-2 , were also rated AAA by both S&P* and KBRA**. In July of 2023, S&P raised its ratings on eight classes of notes and affirmed its ratings on three classes of notes across three issuances.* In May of 2023, KBRA upgraded 14 classes of notes and affirmed seven classes across multiple issuances.**

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

*The full analysis for S&P’s ratings, including any updates, which you should review and understand, is available on spglobal and can be accessed here for OCTL 2023-3, here for OCTL 2023-2, here for OCTL 2023-1, and here for the recent upgrades and affirmations.

**KBRA’s ratings are subject to all of the terms and conditions set forth in the related report and KBRA’s website, which you should review and understand, and can be accessed here for OCTL 2023-3, here for OCTL 2023-2, here for OCTL 2023-1, and here for the recent upgrades and affirmations.

Source: https://rvbusiness.com/octane-completes-380-million-asset-backed-securitization/