Octane, a leader in the FinTech sector that streamlines major recreational purchases, has successfully concluded a $365m asset-backed securitization, known as OCTL 2024-2.
This financial maneuver was secured by fixed-rate installment powersports loans, offered through its dedicated lending arm, Roadrunner Financial.
The securitization introduced six distinct classes of fixed-rate notes, ranging from Class A-1 to Class E, which have been assessed and rated by esteemed agencies such as Standard & Poor’s and Kroll Bond Rating Agency. This marks Octane’s initial asset-backed securitization for the year 2024, following a series of successful issuances in the previous year.
In this latest financial initiative, Octane saw significant contributions from Atlas SP Securities, which led the transaction as the structuring agent and lead book-running manager. Additional support was provided by J.P. Morgan Securities, Mizuho Americas, and Truist Securities, acting as joint bookrunners, helping to widen Octane’s investor base while retaining the backing of its longstanding institutional investors.
Octane’s Chief Financial Officer, Steven Fernald, expressed enthusiasm about the company’s continued success, stating, “We’re thrilled to close our second transaction of the year and are grateful to see such strong recurring participation by our existing institutional investors.
“Likewise, we welcome the addition of several new asset managers, pension funds, banks, and insurance companies to our best-in-class ABS platform, which continues to be a key differentiator for Octane and a testament to the underlying strength of our business.”
The company has also recently achieved several significant milestones, including the launch of its revamped Dealer Portal 2.0. This updated platform introduces pioneering features such as a Leads Page and a restructured Work-the-Deal page, alongside streamlined credit applications, reinforcing Octane’s commitment to enhancing the purchasing process for dealers and customers alike.
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