Davidson Kempner Capital Management LP,
Atalaya Capital Management, Nelnet, Inc. and Värde Partners Join
Growing list of Marketplace Loan Investors Seeking Competitive
Yield
SAN
FRANCISCO, Nov. 9, 2023 /PRNewswire/
-- LendingClub Corporation (NYSE: LC), the parent company
of LendingClub Bank ("LendingClub"), America's leading digital
marketplace bank, today announced it crossed $1 billion of personal loans sold through its
Structured Loan Certificates Program ("SLCLC Program"). The
company anticipates approximately $2 billion dollars
of loan volume through the SLCLC Program over
the next 6 months as it continues to scale.
LendingClub's Structured Loan Certificates Program is a
two-tranche private securitization in which LendingClub retains the
senior note and sells the residual certificate on a pool of loans
to a marketplace investor at a predetermined price, effectively
providing built-in financing.
This structure, developed by LendingClub and enabled by its
marketplace bank model, delivers a transaction that benefits both
marketplace investors and LendingClub. Marketplace investors earn
compelling levered returns with low friction and low-cost financing
on a liquid security, and LendingClub earns an attractive yield
with remote credit risk. The program has expanded rapidly since its
April 2023 launch, allowing
LendingClub to generate sizable certificate purchases from several
investors who are new to the LendingClub platform. Investment funds
advised by Davidson Kempner Capital Management LP served as anchor
investor on the first series transactions, with Atalaya Capital
Management, Nelnet, Inc. and Värde Partners joining as subsequent
investors, and J.P. Morgan Securities LLC as settlement facilitator
for the securities.
"Structured certificates are just one example of how we're using
our bank capabilities to benefit our members, our marketplace
investors, and our business," said Clarke
Roberts, General Manager, Marketplace at LendingClub. "Our
marketplace bank model sets us apart from the competition. No other
industry player offers both high-quality personal loans and
streamlined financing. Listening and responding quickly to investor
needs is essential to our marketplace, and the product's rapid
adoption with investors who are new to the LendingClub platform is
confirmation that we're on target and leading the industry
forward."
"As an entrepreneurial firm, we're excited to partner with
LendingClub on its latest innovative structure," said Justin Burns, Managing Director from Atalaya
Capital Management. "The Structured Loan Certificates program
provides us both efficient leverage and scalable access to personal
loans from a provider of choice in the asset class. We moved
quickly to take advantage of the new opportunity and are glad to be
a new partner for LendingClub."
Throughout its 15-year history, LendingClub has offered a range
of industry-first, unique product structures to expand investor
access to consumer credit, broaden distribution, and improve
liquidity for all investors.
About LendingClub
LendingClub Corporation (NYSE: LC) is the parent company of
LendingClub Bank, National Association, Member FDIC. LendingClub
Bank is the leading digital marketplace bank in the U.S., where
members can access a broad range of financial products and services
designed to help them pay less when borrowing and earn more when
saving. Based on more than 150 billion cells of data and over
$90 billion in loans, our advanced
credit decisioning and machine-learning models are used across the
customer lifecycle to expand seamless access to credit for our
members, while generating compelling risk-adjusted returns for our
loan investors. Since 2007, more than 4.7 million members have
joined the Club to help reach their financial goals. For more
information about LendingClub, visit https://www.lendingclub.com.
Safe Harbor Statements
The series notes and residual certificates issued in the
LendingClub Structured Certificates Program have not been and will
not be registered under the Securities Act of 1933 or any state or
other jurisdiction's securities laws and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act of 1933 and applicable state or
other jurisdictions' securities laws.
This press release will not constitute an offer to sell or the
solicitation of an offer to buy the series notes or residual
certificates or any other securities, nor will there be any offer,
solicitation or sale of the series notes, the residual certificates
or any other securities in any state or other jurisdiction in which
the offer, solicitation or sale would be unlawful.
Some of the statements above, including statements regarding the
performance and growth of the SLCLC Program, are forward-looking
statements. The words "anticipate," "believe," "estimate,"
"expect," "intend," "may," "outlook," "plan," "predict," "project,"
"will," "would" and similar expressions may identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. Factors that could
cause actual results to differ materially from those contemplated
by these forward-looking statements include LendingClub's ability
to continue to attract and retain new and existing borrowers and
platform investors, the macroeconomic environment, default rates
and those factors set forth in the section titled "Risk Factors" in
LendingClub Corporation's most recent Annual Report on Form 10-K,
as filed with the Securities and Exchange Commission, as well as in
subsequent filings by LendingClub Corporation with the Securities
and Exchange Commission. LendingClub may not actually achieve the
plans, intentions or expectations disclosed in forward-looking
statements, and you should not place undue reliance on
forward-looking statements. Actual results or events could differ
materially from the plans, intentions and expectations disclosed in
forward-looking statements. LendingClub does not assume any
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Contact:
For Investors: IR@lendingclub.com
Media Contact: Press@lendingclub.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/lendingclub-bank-crosses-1-billion-personal-loans-sold-through-its-structured-loan-certificates-program-301983207.html
SOURCE LendingClub Corporation