Continental Finance Company Closes Sixth Credit Card Term Securitization for $210 Million

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Sep 29, 2022, 17:12 ET

WILMINGTON, Del., Sept. 29, 2022 /PRNewswire/ -- Continental Finance Company, LLC ("CFC") is pleased to announce the closing of its sixth term securitization of credit card receivables to date, which is also the third term securitization from its subsidiary Continental Finance Credit Card ABS Master Trust ("CFCCMT").

The transaction was underwritten by Credit Suisse and JP Morgan. Proceeds from the securitization were $210 million and will be used to repay CFC's two variable funding note revolving credit facilities.

Tamer El-Rayess, CFC's Chairman commented, "The Series 2022-A issuance out of CFC's master trust subsidiary was met by overwhelming investor response as the transaction was oversubscribed, reflecting continuing investor demand for fixed income securities. As we reflect on the economic environment of the past few years, in March of 2020 the fixed income investor market began shedding consumer risk backed securities, as it expected the consumer to be strained, given the spike in unemployment. However, CFC observed very robust consumer behavior, as cardholders paid down their balances throughout the Covid stimulus payment era, while using their credit cards primarily for essential purchases such as groceries and other online purchases. We are very proud to market and service such essential products to consumers so they can make purchases online and pay for everyday items without having to handle cash. CFC's experience in both recent major economic events, which included the 2008 Great Financial Crisis and the Pandemic of 2020, prove the importance of these products in aiding consumers through those difficult times."

CFC President Steve McSorley noted, "Not only are these credit card products essential to underserved consumers, but the performance of the credit card portfolio during both financial crises illustrates the resilience of these products during times of economic stress. Unlike prime credit products with high balances, CFC customers view their credit card account as one of their most important financial tools in the conduct of their everyday life. They view these credit cards as an invaluable method of payment as much as they do an extension of credit. We observe counter cyclical behavior during times of stress, as opposed to the prime credit card market. As we exit the post-Covid stimulus payment era, the 2022-A transaction is further proof of not only the investor demand for our securities, but also the increased growth in our receivables portfolio highlighted by new account originations. As further evidence of the demand for these products, we are very proud CFC recently climbed into the Top 50 Credit Card Issuers in the U.S. per The Nilson Report based on outstanding credit card balances. The funding provided by the 2022-A transaction will allow CFC to further support its bank partners as they collectively increase their robust offering of credit card products to the underserved market."

About Continental Finance Company

Founded in 2005, Continental Finance Company is dedicated to being the leading marketer and servicer of credit cards to the near prime market. Its mission is simple, yet clear. The company aims to help its customers build both their credit and financial futures, while providing white glove "Customer Focused" treatment they do not receive elsewhere. It measures its success by its customers' financial success and strives for 100% customer satisfaction.

The company always thinks of its customer first, helping them to bank better throughout their credit building process. The goal is to establish trust, confidence, and value with its customers by delivering an unrivaled experience throughout the customer's rebuilding of their credit journey. The company aims to prove its value and remain the credit card of choice among its customers, earning their loyalty in the hope we remain their life-long credit card provider.

SOURCE Continental Finance Company, LLC