Octane Partners with Yieldstreet on Innovative Transaction to Fuel Continued Growth

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Feb 06, 2024, 09:03 ET

$280M Transaction is Octane's First Whole Loan Sale; Yieldstreet Creates Inaugural Private Credit Facility

NEW YORK, Feb. 6, 2024 /PRNewswire/ -- Octane^® (Octane Lending, Inc.^®), the fintech revolutionizing the buying experience for major recreational purchases, and Yieldstreet, a leading private market investing platform, today announced the completion of an agreement to sell $280 million of fixed-rate installment powersports whole loans issued through Octane's in-house lender, Roadrunner Financial^®, Inc to Yieldstreet in two separate transactions. The first sale, which included a newly-originated portfolio of $140 million in loans, closed in December 2023. The second sale, which includes committed financing already in place, is expected to close no later than April 2024. Yieldstreet partnered with a world class financial institution on their inaugural private credit facility to help power the transaction.

"Yieldstreet is the preeminent private market platform led by a team of seasoned world-class investment professionals," said Ravi Chaganty, Senior Vice President, Capital Markets at Octane. "They were tremendous to partner with on this transaction and we look forward to growing our burgeoning relationship with them in the future."

"We are thrilled to partner with Octane on this milestone transaction – their first major private whole loan sale," said Ted Yarbrough, Yieldstreet Chief Investment Officer. "Opportunities like this further validate our strategy of working closely with high-quality originators to source attractive loan assets that meet our strict investment criteria. We look forward to pursuing similar collaborative investments with Octane in the future and bringing these offerings to investors on Yieldstreet."

"This transaction further enhances our capital markets strategy by diversifying our committed funding sources in order to support our continued total addressable market expansion in the powersports market and beyond," said Steve Fernald, Chief Financial Officer at Octane.

Octane's capital markets strategy includes committed warehouse facilities and more than $3 billion of asset-backed securitizations to date. All of Octane's 2023 ABS issuances earned AAA-ratings* on the senior class of notes.

*The full analysis for S&P's ratings for Octane's Asset Backed Securitizations, including any updates, which you should review and understand, is available on spglobal.com and can be accessed here. KBRA's ratings are subject to all of the terms and conditions set forth in the related report and KBRA's website, which you should review and understand, and can be accessed here, including recent upgrades and affirmations.

About Octane:

Octane^® is revolutionizing recreational purchases by delivering a seamless, end-to-end digital buying experience. We connect people with their passions by combining cutting-edge technology and innovative risk strategies to make lifestyle purchases–like powersports vehicles, RVs, and outdoor power equipment–fast, easy, and accessible.

Octane adds value throughout the customer journey: inspiring enthusiasts with the Octane Media™ editorial brands, including Cycle World^® and UTV Driver^®, instantly prequalifying consumers for financing online, routing customers to dealerships for an easy closing, and supporting customers throughout their loan with superior loan servicing.

Founded in 2014, we have more than 30 OEM and 4,000 dealer partners, and a team of 500+ in remote and hybrid roles. Visit www.octane.co.

Octane^® and Roadrunner Financial^® are registered service marks of Octane Lending, Inc.

Octane Contacts:
Media Relations: Shannon O'Hara
VP of Communications & Brand at Octane
[email protected]

Investor Relations: Kartik Kothari
SVP of Corporate Development and Investor Relations at Octane
[email protected]

About Yieldstreet:

With more than 500,000 members, Yieldstreet is a leading private market investing platform, helping investors diversify their portfolios with alternative assets spanning real estate, private credit, legal finance, art and more. The platform is differentiated by its ten asset classes, institutional due diligence standards, strong track record, and commitment to a seamless investor experience.

Yieldstreet Contacts:
Zoey Gottlieb / Clare Burrows
Prosek Partners
[email protected]

SOURCE Octane