Octane Completes $340 Million Asset-Backed Securitization to Drive Continued Growth

New Milestone with Company's Largest AA-rated Issuance To-Date; Sustained Momentum with 2nd Securitization of 2021

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Nov 10, 2021, 09:00 ET

NEW YORK, Nov. 10, 2021 /PRNewswire/ -- Octane (Octane Lending Inc.), the fintech revolutionizing the buying experience for major recreational purchases, today announced that it has closed a $340 million securitization ("OCTL 2021-2") collateralized by its fixed-rate installment powersports loans. This successful transaction marks Octane's second securitization of 2021 and fourth since launching the program in December 2019.

OCTL 2021-2 issued three classes of fixed-rate notes: Class A, Class B, and Class C, all of which Standard & Poor's (S&P)* and Kroll Bond Rating Agency (KBRA)** rated as AA/AA, A/A, and BBB/BBB+ respectively in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. This was Octane's largest asset-backed securitization transaction to date. J.P. Morgan acted as lead bookrunner and structuring agent, with Credit Suisse and Truist Securities as joint bookrunners.

"The AA rating and high demand for our securitizations are a testament to the strong performance of our loans and the success of our business model," said Steven Fernald, Chief Financial Officer at Octane. "We are grateful for the diverse mix of, and continued participation by, our institutional investor partners who have given us even more flexibility to support our rapid growth and expansion into new verticals."

In August 2021, Octane announced it raised $52 million in Series D funding bringing the company's valuation to over $900 million with more than $192 million in total equity funding raised to date.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

*The full analysis for S&P's ratings, including any updates, which you should review and understand, is available on standardandpoors.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.

About Octane:
Octane offers instant financing to fuel your lifestyle. Octane dramatically simplifies and accelerates the transaction process for major recreational purchases such as motorcycles, ATVs, and zero-turn lawn mowers by adding value at each stage of the buying journey. Octane offers automated underwriting, innovative credit products, and financing, through its in-house lender Roadrunner Financial. Octane reaches millions of enthusiasts through its editorial brands like Cycle World and UTV Driver and helps consumers buy their favorite products by pre-qualifying them on dealer and OEM websites. Octane is revolutionizing lending in underserved verticals and continues to grow within markets that account for tens of billions of dollars in annual transactions.

Octane is a remote-first fintech company with offices in NYC and Dallas. It has grown its team by 50% in the last year, from 213 to over 400 employees, and continues to actively recruit top talent. To learn more about career opportunities and view openings, please visit the careers page on www.octane.co.

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

Press Contacts:
Shannon O'Hara
Director of Corporate Communications at Octane
[email protected]

N6A on behalf of Octane
[email protected]

SOURCE Octane