Octane completes $406.9m securitisation

Octane completes $406.9m securitisation

Octane, which claims to be revolutionising the buying experience for recreational purchases, has closed a $406.9m securitisation collateralised by its fixed-rate instalment powersports loans.

The company had initially targeted $305.2m for the sale.

This is the largest of Octane’s deals to-date and the first to receive a AAA-rating from both Standard & Poor’s (S&P) and Kroll Bond Rating Agency (KBRA).

OCTL 2023-1 issued five classes of fixed-rate notes: Class A, Class B, Class C, Class D, and Class E. These were rated by the S&P and KBRA as AAA/AAA, AA/AA+, A/A+, BBB/BBB, and BB/BB+, respectively.

This latest issuance added seven new investors to Octane.

Founded in 2014, Octane offers a digital end-to-end buying experience that offers seamless ways to purchase recreational products, such as powersports, vehicles, RVs and outdoor power equipment.

Octane chief financial officer Steven Fernald said, “We’re 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.

“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.”

Truist Securities acted as lead bookrunner and structuring agent, with J.P. Morgan as joint bookrunner.

In other PayTech news, payments intelligence company Pagos secured $34m in its Series A funding round. The investment, which was led by Arbor Ventures, will help the company expand its engineering team and bolster its product suite.

Pagos is focused on reducing payments complexity to drive better performance and revenue growth.

Another payments company to raise funds was Spade. The company, which secured $5m for its seed, aims to improve transaction data to improve finance.

Keep up with all the latest FinTech news here.

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