SoFi Completes Largest Consumer Loan Securitization to Date
On Friday, SoFi announced it has completed a $727 million issuance of SoFi Consumer Loan Program 2017-6 (“SCLP 2017-6”) notes, making it the largest offering of securities backed by consumer loans and is SoFi’s 11th ABS transaction this year, bringing the lender’s total issuance for 2017 to $6.1 billion.
“SoFi’s securities have performed well in the market, and investor demand for this offering was strong with over $2.2 billion of orders. There were 39 investors in this deal, including five new institutions.”
This news comes just a couple of weeks after the online lender topped $25 billion in loan originations and claimed its community has grown to just under 400,000 users. SoFi claims it has established itself as one of the U.S.’s 10 largest sponsors of asset-backed securities, completing 14 deals over the past year totaling $6.5 billion.
SoFi noted that rating agencies have raised their ratings on 12 previous SoFi securitizations, reflecting the strong performance of the underlying loans. The lender added joint lead managers on SCLP 2017-6 were J.P. Morgan, Deutsche Bank, Goldman Sachs, and Mizuho Securities.