Octane, the innovative fintech company shaking up the recreational purchasing industry, has recently closed a significant transaction.
The company has successfully secured a $406.9 million securitization, the largest of its seven transactions to date, according to a press release.
The securitization was collateralized by Octane’s fixed-rate installment powersports loans and received a AAA-rating from both Standard & Poor’s and Kroll Bond Rating Agency, marking a major milestone for the company.
The securitization was structured with five classes of fixed-rate notes, rated as AAA/AAA, AA/AA+, A/A+, BBB/BBB, and BB/BB+ by S&P and KBRA, respectively.
The transaction saw Octane attract seven new investors, with Truist Securities acting as lead bookrunner and J.P. Morgan as joint bookrunner.
“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,” said Steven Fernald, Chief Financial Officer at Octane.
This latest securitization follows Octane’s previous successful asset-backed transactions in 2022 and takes the company’s total securitizations to nearly $2.3 billion since the program’s launch in December 2019.
Octane’s commitment to providing a unique and accessible buying experience for its customers has resulted in continued growth and diversification of its investor base.
Octane’s successful $406.9 million securitization is a testament to the strength of the company and its innovative approach to revolutionizing the recreational purchasing industry.
The AAA-rating from leading rating agencies is a significant achievement. Octane’s commitment to providing its customers with a fast, easy buying experience is evident in its continued growth and expansion.