Octane Lending completes $340M securitization to fuel growth

Octane Lending Inc., coming off a highly successful 2021 Powersports Business Accelerate Conference sponsorship, announced that it has closed a $340 million securitization 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.

Octane has grown its team by 50% in the last year, from 213 to over 400 employees, and continues to actively recruit top talent.

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.