Octane Launches “Octane Preferred”, B2B Loyalty Program with Exclusive Benefits
Octane Surpasses $1B in Originations in 2022

New York City-based fintech Octane Lending which is revolutionizing the buying experience for major recreational purchases, closed a $406.9 million securitization (“OCTL 2023-1“) collateralized by its fixed-rate installment power sports loans. This is the largest of Octane’s seven transactions to date and the first to receive a AAA rating from both Standard & Poor’s (S&P)* and Kroll Bond Rating Agency (KBRA)**.

OCTL 2023-1 issued five classes of fixed-rate notes: Class A, Class B, Class C, Class D, and Class E, which S&P* and KBRA** rated as AAA/AAA, AA/AA+, A/A+, BBB/BBB, and BB/BB+, respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. This transaction follows a period of significant growth and expansion into new markets for Octane.

Through this issuance, the company continued to diversify its investor base with seven new investors, which is a testament to the strength and growth of the program. Additionally, due to significant investor demand, Octane was able to secure an upsize of the transaction from an initial target issuance of $305.2 million to $406.9 million in notes. Truist Securities acted as lead book-runner and structuring agent, with J.P. Morgan as joint book-runner.

“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. “Our capital markets strategy is one of Octane’s many differentiators and we will continue to build on the strength of both our program and underlying business in the future.”

In both of Octane’s two asset-backed securitizations in 2022,  OCTL 2022-1 and OCTL 2022-2, the senior class of notes were rated AAA by Kroll Bond Rating Agency (KBRA)** and AA by S&P*. The company has now completed nearly $2.3 billion of asset-backed securitizations since launching the program in December 2019.