LendingClub closes second secularisation deal on $323m


Online lending platform LendingClub has closed its second securitisation deal, which it sponsored and supported, in a deal worth $323m.

The deal is issued in prime notes backed by consumer loan assets facilitated through the LendingClub Platform. The securitisation marks the sixth to be supported or sponsored by LendingClub and the fourth securitisation facilitated by its loans.

This transaction was backed by around $350m of collateral, which includes $217.3m of Class A notes, $51m Class B and $54.7m Class C notes. The ratings were assigned by Kroll Bond Rating Agency and saw 10 new investors, which include insurance companies, mutual funds and other large asset managers, on the LendingClub platform. Citi and JP Morgan served as lead underwriters for the deal.

California-based LendingClub helps connect borrowers with investors via an online marketplace, which helps lenders receive monthly returns. Through the platform a user can apply for a personal loan, business loan, auto refinancing or medical care. The personal loan can be taken out for up to $40,000, while business loans can be applied for between $5,000 and $300,000. An investor has the opportunity to invest into an individual or institution.

LendingClub CFO Tom Casey said, “After the successful execution of our inaugural securitization in the second quarter and the tremendous demand we observed, we continue to expand our investor universe with our second securitization by creating a consistent, repeatable program, at scale for our contributing investors,” “This securitization demonstrates our continued commitment to our investors and the strong market demand for our asset.”

Earlier this year the company hired PayPal global head of credit Steve Allocca as its new president to help with expansion into new sectors.

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