Octane Surpasses $3B in Aggregate Originations on Its Journey to Make Buying Better

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Aug 23, 2023, 09:17 ET

Launches 3 New Partnerships, Grows RV Originations by 85%, and Increases Adoption of Octane Prequal by 140% in H1 2023

Octane surpassed $3B in aggregate originations through its in-house lender, Roadrunner Financial^®, Inc, grew RV originations by 85% compared to H2 2022, and grew tractor and trailer originations by 112% year-over-year
Continued to strengthen relationships with OEMs by launching three new partnerships
Grew the number of dealers using Octane Prequal™, the award-winning digital soft pull tool, by 140% year-over-year
Launched innovative new offerings, including the digital soft pull tool, Prequal Flex™; the B2B loyalty program, Octane Preferred™; and advertising on the renowned Octane Media™ properties, which include Cycle World^®, Motorcyclist^®, and UTV Driver^®
Closed two $400M asset-backed securitizations, OCTL 2023-1 and OCTL 2023-2, for which the senior class of notes were rated AAA by S&P* and KBRA**

NEW YORK, Aug. 23, 2023 /PRNewswire/ -- Octane^® (Octane Lending, Inc.^®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has achieved key milestones during the first half of 2023 on its journey to make buying better.

Octane surpassed $3B in aggregate originations through its in-house lender, Roadrunner Financial^®. The company also saw considerable growth in its newer verticals. Octane grew originations in recreational vehicles (RVs) by 85% since the second half of 2022 and increased tractor and trailer originations by 112% year-over-year.

Adding to its extensive network of Original Equipment Manufacturers (OEMs), Octane launched prime and subvented non-prime financing partnerships with Iron Bull Carts, a provider of powerful, stylish, and comfortable golf carts; Scag Power Equipment, a division of Metalcraft of Mayville, Inc., one of the largest independent manufacturers of commercial and residential mowing equipment and debris/turf management equipment in the world; and Taiwan Golden Bee, one of the world's leading manufacturers of ATVs, scooters, engines, and related key components.

By delivering a fast, easy experience, Octane strengthened its relationships with dealers. The company funded loans for over 800 dealers who had not funded with Roadrunner Financial during the same period in the prior year. Furthermore, the company's award-winning, digital soft pull tool, Octane Prequal™, helped dealers increase their customer base by driving high-quality, high-intent buyers in-store with an experience that saves time for both dealers and consumers. During the first half of 2023, the number of dealers who added Octane Prequal to their websites increased by 140% year-over-year.

Octane expanded its innovative and differentiated offering by rolling out new products and services. Building on the success of Octane Prequal, the company launched its newest digital soft pull tool, Prequal Flex™, which enables dealers to reach consumers through all of their marketing channels, including email, social media, text, advertising, and events. Prequal Flex rolled out to powersports dealers nationwide in May and, by the end of June, over 150 dealers had used the tool to submit at least one application. Octane also introduced advertising on its renowned Octane Media™ properties, which include Cycle World^®, Motorcyclist^®, and UTV Driver^®, enabling leading OEMs and other industry players to connect with millions of high-intent powersports buyers. In March, Octane rolled out a unique business-to-business (B2B) loyalty program, Octane Preferred™, to all of its powersports dealer partners nationwide. During Q2 2023, more than 700 dealers benefited from the first two tiers of Octane Preferred each month.

"Despite challenging market conditions, Octane has remained successful by leveraging our digital tools and unique services, as well as our strong relationships with dealer and OEM partners," said Jason Guss, CEO and Co-Founder of Octane. "Our focus on innovation and the customer experience will continue to position us well as we deliver on our mission to connect people with their passions and make buying better."

Continuing its success in capital markets, Octane closed two asset-backed securitizations, OCTL 2023-1 and OCTL 2023-2, both of which were upsized to $400M. The senior class of notes in both transactions were rated AAA by Standard & Poor's (S&P)* and Kroll Bond Rating Agency (KBRA)**, a testament to the strength of Octane's prudent credit underwriting as well as its thoughtful servicing strategies and dedicated collections activities. During H1 2023, S&P raised its ratings on eight classes of notes and affirmed its ratings on three classes of notes across three issuances.* At the same time, KBRA upgraded 14 classes of notes and affirmed seven classes across multiple issuances.** Octane has completed $2.7 billion of asset-backed securitizations through eight transactions since launching the program in December 2019. Additionally, Octane closed a new $125M warehouse facility in April, bringing its total revolving capacity to $925M, while also renewing and extending the existing maturities of its other four facilities for up to an additional two years.

Octane also continued to receive awards for its products, leadership, and culture, including "Best Consumer Lending Product" in the 7th annual FinTech Breakthrough Awards and a BIG Innovation Award from the Business Intelligence Group. Additionally, Jason Guss, CEO and Co-Founder of Octane, was named Best Entrepreneur - Computer Software - 500 or More Employees at the American Business Awards, and Murali Vajjiravel, Chief Technology Officer at Octane, placed in the tenth spot on Financial Technology Report's list of the Top 25 Financial Technology CTOs and CIOs of 2023.

Disclaimers
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 spglobal.com and can be accessed here for OCTL 2023-1, here for OCTL 2023-2, and here for the recent upgrades and affirmations.

**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 for OCTL 2023-1, here for OCTL 2023-2, and here for the recent upgrades and affirmations.

This is not an offer, solicitation of an offer, recommendation or advice to buy or sell any security, financial product or instrument.

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^®, Motorcyclist^®, 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're a remote-first company with over 30 OEM and 4,000 dealer partners.
Visit www.octane.co or investors.octane.co.

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

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

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

SOURCE Octane