SoFi has positioned itself squarely within the millennial lexicon. We learned today that they announced a huge student loan securitization of just under $1B. The company, despite last year’s controversial exit by its founder Mike Cagney, is doing well and firmly entrenching itself within the consumer and student loan markets. We even saw that they were a sponsor this year of the X Games Aspen 2018, an extreme sports event that features competitions in Ski, Snowboard, Snowmobile, Snow Bike and Moto, clearly positioned to the millennial market and in a good place with its pool of investors, which include A-listers like Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank and JPMorgan.
“SAN FRANCISCO, Jan. 25, 2018 /PRNewswire/ — SoFi announced today the closing of its $960.2 million offering of SoFi Professional Loan Program 2018-A Notes (SoFi 2018-A).
The offering reflects underlying collateral of more than $1 billion in student loans and is SoFi’s largest ever securitization, as well as the first by any fintech lender to reach the billion-dollar collateral mark.
The 2018-A notes offering is SoFi’s first ABS offering of the year and follows a strong 2017, which saw the company issue a total of $6.9 billion in consumer loan and student loan refi transactions.
Ashish Jain, SVP of Capital Markets for SoFi, said: “We were gratified that this transaction found strong interest from investors, particularly institutions that were new to our program, which enabled us to increase the size of the offering. Strong credit ratings and the solid performance of our securitizations have allowed us to expand our investor base over the past year.”
The transaction was heavily subscribed, with 39 unique investors, including five new investors, and more than $3 billion in total orders.
Joint lead managers were Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank and JPMorgan.”