Press

Octane Completes $365 Million Asset-Backed Securitization to Fuel Continued Innovation

AAA-Rating Follows Period of Growth and Momentum

NEW YORK, July 11, 2024 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $365 million securitization (“OCTL 2024-2“) collateralized by its fixed-rate installment powersports loans issued through its in-house lender, Roadrunner Financial®, Inc. 

OCTL 2024-2 issued six classes of fixed-rate notes: Class A-1, Class A-2, Class B, Class C, Class D, and Class E, which Standard & Poor’s (S&P)* and Kroll Bond Rating Agency (KBRA)** rated as A-1+/K1+, AAA/AAA, AA/AA+, A/A+, BBB/BBB+, BB/BB+, respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. Octane’s first asset-backed securitization of 2024, OCTL 2024-1, as well as its three asset-backed securitizations of 2023, OCTL 2023-1, OCTL 2023-2, and OCTL 2023-3, all had their senior classes of notes rated AAA by both S&P and KBRA upon issuance. 

Atlas SP Securities acted as lead book-running manager and structuring agent, with J.P. Morgan Securities, Mizuho Americas, and Truist Securities serving as joint bookrunners. Octane continued to expand its investor base in this latest issuance while maintaining the support of existing institutional investors.

“We’re thrilled to close our second transaction of the year and are grateful to see such strong recurring participation by our existing institutional investors,” said Steven Fernald, Chief Financial Officer at Octane. “Likewise, we welcome the addition of several new asset managers, pension funds, banks, and insurance companies to our best-in-class ABS platform, which continues to be a key differentiator for Octane and a testament to the underlying strength of our business.”

This is Octane’s eleventh asset-backed securitization transaction since launching the program in December 2019. The company has completed more than $3.7 billion of asset-backed securitizations to date. 

This transaction comes on the heels of several exciting milestones. Notably, earlier this year, Octane launched its innovative Dealer Portal 2.0, a significantly upgraded version of its industry-leading dealer platform. Updates include a first-of-its-kind Leads Page, a reimagined Work-the-Deal page, and shorter, simpler credit applications. 

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.

**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.

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