LendingPoint Closes a $350 Million Warehouse Facility Bringing Their Total Issuance to $2.14 Billion Since 2017

LendingPoint Closes a $350 Million Warehouse Facility Bringing Their Total Issuance to $2.14 Billion Since 2017

December 18, 2020

LendingPoint, the data and technology platform revolutionizing access to credit, announced today the closing of its tenth (10th) securitization transaction since 2017 and its fourth (4th) securitization transaction in 2020.  Since 2017, LendingPoint has issued $2.14 billion of securitized notes, in aggregate, including: $1.15 billion of unrated, warehouse facility notes; $882 million of KBRA-rated, term ABS notes; and $108 million of unrated, term ABS notes.

LendingPoint’s most recent transaction (the “LendingPoint SPE Trust Series 2020-VFN1”) involved the issuance of senior and subordinate notes totaling $350 million.  The notes revolve until December 2022 and are expandable to up to $700 million. There were six (6) lenders that participated in this transaction.

LendingPoint intends to use this warehouse facility to fund the continued growth of its consumer installment loan origination platform. Guggenheim Securities, the investment banking and capital markets division of Guggenheim Partners, arranged the transaction and served as sole structuring agent and sole bookrunner. CBIZ MHM is the Administrative Agent, and U.S. Bank is the Note Agent and Paying Agent. The transaction was structured as an amendment and an extension of LendingPoint’s Series 2018-1 warehouse facility, which was also arranged by Guggenheim Securities.

“The successful closing of our fourth securitization of 2020 confirms the investment community’s trust in the LendingPoint platform’s ability to continue to originate high-performing assets in trying and rapidly-changing economic conditions,” stated Charlie Maines, Director of LendingPoint’s Capital Markets Group, who joined the LendingPoint leadership team earlier this year.

LendingPoint’s CEO Tom Burnside said, “the public and private capital markets have proven to be — and continue to be — an essential part of our diversified funding strategy.  LendingPoint’s ability to both grow and remain profitable in 2020 validates our robust risk and business models while allowing us to continue to do good while doing well.”

In August 2020, LendingPoint and eBay announced their partnership, which enables LendingPoint to provide eBay sellers with the capital they need to grow their respective online businesses. In November 2020, LendingPoint closed its first revolving and largest ever, KBRA-rated consumer loan ABS issuance and earned an impressive, consecutive placement on the Deloitte Technology Fast 500 list. Earlier in the year, LendingPoint was recognized as the 7th fastest growing company in metro Atlanta and was placed on Inc’s 5000’s fastest growing companies in America for the second year in a row.

About LendingPoint

LendingPoint is a data and technology platform that enables origination of unsecured personal loans both direct to consumers online and at the point of sale for financial institutions and for its own balance sheet. The company uses its data algorithms and technology to create better lending and borrowing experiences by finding more reasons to say “yes” — democratizing credit across the credit spectrum by unlocking access to affordable loans. Its LendingPoint Merchant Solutions platform provides ecommerce platforms, merchants and other service providers a fully integrated, one-stop retail financing solution to accelerate commerce by converting more customers at the point of sale.

For the past two years, LendingPoint was named one of Inc. 5000’s list of fastest-growing private companies, ranking 17th in 2019.  LendingPoint ranked 9th on Deloitte’s 2019 Technology Fast 500 and in 2020 was honored as one of the top 40 fastest growing companies in Atlanta by ACG. LendingPoint is a privately held company headquartered in Metro Atlanta, with offices in New York.

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USA PATRIOT Act Notice: Important Information About Procedures for Opening a New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

* Applications submitted on this website may be funded by one of several lenders, including: FinWise Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Actual loan offers and loan amounts, terms, and annual percentage rates ("APR") may vary based upon LendingPoint's proprietary scoring and underwriting system's review of your credit, financial condition, other factors, and supporting documents or information you provide. Origination or other fees up to 10% may apply depending upon your state of residence. Upon final underwriting approval to fund a loan, said funds are often sent via ACH the next non-holiday business day. Loans are offered from $1,000 to $36,500, at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 72 months. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $2,000. For a well-qualified customer, a requested loan of $10,000 serviced by LendingPoint over a period of 48 months that has an APR of 26.59% with an origination fee of 10% may have a payment of $340.52 per month. (Actual terms and rate depend on credit history, income, and other factors.) The total amount due under the loan terms provided is $16,345.12 and the disbursal amount is $10,000. In the example provided, the total financed amount is increased to receive the full requested loan amount after the origination fee is deducted. The total amount due is the total amount of the loan you will have paid after you have made all payments as scheduled.

* Applications submitted may be funded by one of several lenders including First Electronics Bank, a Utah-chartered bank, Member FDIC; Coastal Community Bank, Member FDIC; and LendingPoint, a licensed lender in certain states. Loan approval is not guaranteed. Minimum loan amounts apply in Georgia, $3,500; Colorado, $3,001; and Hawaii, $1,500. Upon final underwriting approval to fund a loan, said funds are often available the next non-holiday business day. Actual loan offers and loan amounts, terms and annual percentage rates (“APR”) may vary. Loans are offered from $500 to $10,000 (loan amount maximum based on MCC codes), at rates ranging from 7.99% to 35.99% APR, with terms from 24 to 48 months. For example, for a well-qualified customer, a $5,000 purchase will have a 90-day promotional period with no interest, a 3% fee, and $100 monthly payments. After the promotional period, a remaining balance will be a 24-month term loan, and $263.72 monthly payments with an overall APR of 26.54%.

**Minimum initial transaction of $1,000 in Alabama, Idaho and Iowa.

1. Alimony, child support, or separate maintenance income need not to be revealed if you do not wish to have it considered as a basis for repaying this obligation.

2. The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The federal agency that administers compliance with this law concerning FinWise Bank is the FDIC Consumer Response Center, 1100 Walnut Street, Box #11, Kansas City, MO 64106. The federal agency that administers compliance with this law concerning Coastal Community Bank is the Federal Reserve Consumer Help Center, P.O. Box 1200, Minneapolis, MN 55480. The federal agency that administers compliance with this law for LendingPoint is the Federal Trade Commission, Equal Credit Opportunity, Washington, DC 20580.

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