LendingClub Corp (NYSE:LC) Completes Second Self-Sponsored Securitization


LendingClub Corp (NYSE:LC), America’s leading web marketplace connecting investors and borrowers, has contributed to and sponsored its second securitization contract. The Consumer Loan Underlying Bond Credit Trust 2017-P1 released $323.1 million in prime notes supported by consumer loan assets enabled through the LendingClub platform. It marks as the sixth securitization sponsored or supported by company, and the fourth rated securitization of company facilitated loans overall.

The highlights

Tom Casey, the Chief Financial Officer of Lending Club, expressed that following the successful execution of their inaugural securitization in the Q2 and the tremendous demand they noted, they continue to expand their investor universe with their second securitization by advancing a consistent, repeatable plan, at scale for their contributing shareholders. This securitization showcases their continued commitment to their shareholders and the strong market demand for company’s asset.

This deal was backed by around $350 million of collateral and comprises $217.3 million of Class ‘A’ notes rated “A-(sf)”, $51 million of Class ‘B’ notes rated “BBB (sf)” and Class ‘C’ notes worth $54.7 million rated “BB (sf)”. All ratings were given by Kroll Bond Rating Agency, Inc.

Patrick Dunne, the Chief Capital Officer of LendingClub, expressed that he is incredibly delighted with their team and its execution of this contract. Committing their own funds showcases skin in the game and they were able to expand their reach to ten investors who initially didn’t have exposure to LendingClub supported loans, including mutual funds, insurance companies and other large asset managers. The extensive distribution of notes reflects how mature this asset class has turned as more investors access their customer loan marketplace.

In the last trading session, the stock price of Lending Club declined 0.16% to close the day at $6.41. The decline came at a share volume of compared to average share volume of 8.65 million compared to average share volume of 4.62 million.

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