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Octane completes $400M asset-backed securitization

Octane Lending, Inc. recently announced that it has closed a $400 million securitization (OCTL 2023-2) collateralized by its fixed-rate installment powersports loans issued through its in-house lender, Roadrunner Financial, Inc.

Due to investor demand, Octane was able to secure an upsize of $400 million for the transaction from an initial target issuance of $300 million. The company says it continues to diversify its investor base by attracting several new investors while also maintaining the support of existing institutional investors. ATLAS SP Partners acted as lead manager and structuring agent, with J.P. Morgan and Truist Securities serving as joint bookrunners. This marks Octane’s eighth transaction to date.

“Our capital markets strategy continues to be a differentiator for Octane and our successful securitization program is a testament to the underlying strength of our business,” says Steven Fernald, Chief Financial Officer at Octane. “We’re grateful to our institutional investor partners for their support as we connect people with their passions and make buying better.”

“Octane’s end-to-end buying experience has fundamentally changed the way individuals can make lifestyle purchases, and we’re thrilled to have supported the company on its revolutionary securitization program,” says Thomas Pai, Head of Auto / Equipment Origination at ATLAS SP Partners. “We look forward to continuing to work with the team at Octane as it continues to innovate to capitalize on strong investor and consumer demand.”

This transaction follows a string of introductions from Octane, including a digital soft pull tool, Prequal Flex, and its business-to-business (B2B) loyalty program, Octane Preferred, to its over 4,000 powersports dealer partners nationwide.

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