Octane Completes $375 Million Asset-Backed Securitization, Upsize from Initial $300 Million Target Issuance

Published: Aug. 18, 2022 at 9:00 AM EDT

Continued Momentum with Second AAA-Rated Securitization of 2022 Following Strong Business Performance

NEW YORK, Aug. 18, 2022 /PRNewswire/ -- Octane® (Octane Lending Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $375 million securitization ("OCTL 2022-2") collateralized by its fixed-rate installment powersports loans. This transaction, Octane's second securitization of 2022 and sixth since launching the program in December 2019, follows a period of record-breaking success for the company.

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Octane logo(PRNewswire)

OCTL 2022-2 issued four classes of fixed-rate notes: Class A, Class B, Class C and Class D, which Kroll Bond Rating Agency (KBRA)* and Standard & Poor's (S&P)** rated as AAA/AA(sf), AA/AA-(sf), A/A(sf), and BBB/BBB(sf), respectively in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended.

Through this issuance, the company continued to diversify its investor base with new investors, which is a testament to the strength and growth of the program. Additionally, due to significant investor demand, Octane was able to secure an upsize of the transaction from an initial target issuance of $300 million to $375 million in notes. J.P. Morgan acted as lead bookrunner and structuring agent, with Credit Suisse and Truist Securities as joint bookrunners.

Steven Fernald, Chief Financial Officer at Octane, said: "Our ability to attract and retain such a diverse mix of institutional investor partners is particularly notable in the current market environment. We are grateful for their continued support, which also better positions us to connect people with their passions and make buying better through our revolutionary, end-to-end digital experience."

This issuance follows a period of consistent, strong performance for Octane. The company overcame inventory constraints and other headwinds to solidify its position as one of the top three non-captive lenders in the industry. During the first half of 2022, it increased originations by 67% year over year through its in-house lender Roadrunner Financial, Inc., and increased fundings in its consumer channel by 80% year over year. Over the same period, Octane entered two new markets, tractors and trailers, signed new OEM partnerships, and launched new products to increase the speed and ease of buying.

Octane's first asset-backed securitization of 2022, OCTL 2022-1, a $375 million transaction which closed in May, also received a AAA-rating from KBRA and was upsized from an initial $275 million target issuance. The company has completed nearly $1.9 billion of asset-backed securitizations 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.

*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.

**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.

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 - including powersports vehicles and outdoor power equipment - fast, easy, and accessible.

Octane adds value throughout the customer journey: inspiring enthusiasts with our editorial brands, including Cycle World® 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 550+ employees and over 30 OEM and 4,000 dealer partners. Visit www.octane.co.

Contacts:
Media Relations:
Shannon O'Hara
Director of Corporate Communications at Octane   
Press@octane.co

Investor Relations:
Kartik Kothari
SVP of Corporate Development and Investor Relations at Octane  
IR@octane.co

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