Avant Closes $139 Million Asset-Backed Securitization Led by Jefferies and Secures $200 Million Credit Facility Led by J.P. Morgan and Credit Suisse
New Funding Supports Avant's Rapid Expansion as the Leading Marketplace Lending Platform for Middle Class Consumers
CHICAGO, Aug. 20, 2015 /PRNewswire/ -- Avant, a leading marketplace lending platform, is pleased to announce two newly secured transactions totaling $339 million in debt financing. These recently minted deals bring Avant's funding total to $1.1 billion in debt financing, $334 million in equity financing and $400 million raised through the Avant Institutional Marketplace.
The financing transaction with Jefferies LLC, marks Avant's first asset-backed securitization. The inaugural 144A securitization transaction will provide Avant with $139 million in debt financing. Jefferies LLC served as placement agent for the three tranche securitization and had provided the warehouse financing for the underlying collateral.
"We are pleased to support our client Avant with attractive financing solutions. We appreciate the response of our capital market investor clients to this growing sector of investment opportunities," said Brian McGrath, Co-Head of Mortgage and Asset Backed Securities at Jefferies.
Avant also closed a $200 million revolving warehouse facility, with J.P. Morgan and Credit Suisse serving as senior lenders and with Waterfall Asset Management serving as a mezzanine lender. The deal will provide debt financing for Avant's core US installment loan business.
"This inaugural securitization, placed through leading global investment banking firm Jefferies, furthers our access to a broad source of capital markets funding and sets a strong precedent for future transactions," said Al Goldstein, CEO of Avant. "Partnering with J.P. Morgan and Credit Suisse is an important milestone for Avant as we continue to solidify our position as the premier lending platform. It is further proof of the quality of our loans and will allow Avant to accelerate providing innovative financial products to middle-class consumers."
"Despite Avant's short history, the company has quickly demonstrated the ability to raise capital at a break-neck pace to keep up with growth. Our deep focus on credit and risk management has perked the eyes of Wall Street's premier banks, which are now helping support Avant's strong, but disciplined growth," said Suk Shah, CFO of Avant.
Through the use of big data and machine-learning algorithms, Avant has transformed the traditional personal loan process into a streamlined, consumer-friendly experience. The company counts Tiger Global Management, August Capital, Victory Park Capital, Peter Thiel, KKR, DFJ Growth, and RRE Ventures among its investors. More than 250,000 loans have been issued through the Avant website.
About Avant
Avant is a fast-growing marketplace lending platform that is lowering the costs and barriers of borrowing for consumers. Through the use of big data and machine-learning algorithms, the company offers a unique and highly customized approach to streamlined credit options. At its core, Avant is a tech company that is dedicated to creating innovative and practical financial products for all consumers. To date, Avant has secured more than $1.4 billion in funding and another $400 million through its institutional marketplace. More than 250,000 loans have been issued through the Avant website. Avant has been featured in publications such as The Wall Street Journal, The New York Times, TechCrunch, Fortune, Bloomberg and Crain's Chicago Business. In 2015, Avant was named to Forbes America's Most Promising Companies list as well as Forbes list of Next Billion Dollar Startups. Find out more at www.avant.com.
CONTACT: Carolyn Blackman, 312-763-7510, [email protected]
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