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

July 11, 2024

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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This is not an offer, solicitation of an offer, recommendation or advice to buy or sell any security, financial product or instrument. Our website is for informational purposes only. We do not guarantee the accuracy or completeness of information on or available through this website, and we are not responsible for inaccuracies or omissions in that information or for actions taken in reliance on that information. Please read any applicable disclosures before using or relying on information on or available through this website. Seek professional advice before investing in our securities.

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Octane Completes $300 Million Asset-Backed Securitization to Drive Continued Growth

by Elizabeth Griswold

March 5, 2024

AAA-Rating Follows Period of Strong Business Performance and Momentum

NEW YORK, March 5, 2024 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $300 million securitization (“OCTL 2024-1“) collateralized by its fixed-rate installment powersports loans issued through its in-house lender, Roadrunner Financial®, Inc.

OCTL 2024-1 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+, and BB/BB+ respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The senior class of notes in Octane’s three asset-backed securitizations of 2023, OCTL 2023-1, OCTL 2023-2, and OCTL 2023-3, were also rated AAA by both S&P*** and KBRA**** upon issuance.

Truist Securities acted as lead book-running manager and structuring agent, with J.P. Morgan Securities, ATLAS SP Partners, and Mizuho Americas serving as joint bookrunners. Octane saw a high level of demand for its notes. Additionally, Octane expanded its investor base by attracting new investors through this issuance, while maintaining the support of existing institutional investors

“We’re excited we could take advantage of the favorable ABS market and close a successful transaction with the support of an ever-growing mix of esteemed partners,” said Steven Fernald, Chief Financial Officer at Octane. “Our strong capital markets execution remains a key differentiator for Octane as we continue to grow our business in the months and years ahead.”

This is Octane’s tenth ABS transaction since launching the program in December 2019. The company has completed more than $3.3 billion of asset-backed securitizations to date. Last month, Octane announced the sale of $280M in whole loans to Yieldstreet, a leading private market investing platform. Octane’s capital markets strategy also includes committed warehouse facilities.

This transaction comes on the heels of several exciting milestones. Octane surpassed $4B in aggregate originations last week and, in January, the company announced a strategic agreement with Kawasaki Motors Corp., U.S.A. The company closed 2023 GAAP net income profitable, while growing its number of applications by 96% and launching three new innovative products to help dealerships grow their businesses.

*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.

***The full analysis for S&P’s ratings for each of these transactions, including any updates, which you should review and understand, is available on spglobal.com and can be accessed here.

****KBRA’s ratings for each of these transactions 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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Press

Octane Completes $380 Million Asset-Backed Securitization

by Elizabeth Griswold

October 5, 2023

Third Issuance and AAA-Rating of 2023

NEW YORK, October 5, 2023 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $380 million securitization (“OCTL 2023-3“) collateralized by its fixed-rate installment powersports and recreational vehicle loans issued through its in-house lender, Roadrunner Financial®, Inc. This transaction is Octane’s ninth since launching the program in December 2019 and third of 2023. The company has completed more than $3 billion of asset-backed securitizations to date.

OCTL 2023-3 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, and BB-/BB+ respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended.

J.P. Morgan Securities acted as lead manager and structuring agent, with Truist Securities, ATLAS SP Partners, and Mizuho Americas serving as joint bookrunners. Despite a record amount of primary new issuance volume in the ABS market during the month of September, Octane saw strong demand for its paper, which allowed the banking syndicate to price at or inside of guidance. Additionally, Octane continued to diversify its investor base while also maintaining the support of existing institutional investors.

“As we build on Octane’s strong capital markets program, a competitive advantage, we’re grateful for the support of our esteemed institutional investor partners,” said Steven Fernald, Chief Financial Officer at Octane. “This successful transaction will help fuel our continued growth as we connect people with their passions and make buying better.”

The senior class of notes in Octane’s first two asset-backed securitizations of 2023, OCTL 2023-1 and OCTL 2023-2, were also rated AAA by both S&P* and KBRA**. In July of 2023, S&P raised its ratings on eight classes of notes and affirmed its ratings on three classes of notes across three issuances.* In May of 2023, KBRA upgraded 14 classes of notes and affirmed seven classes across multiple issuances.**

*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 for OCTL 2023-3, here for OCTL 2023-2, here for OCTL 2023-1, and here for the recent upgrades and affirmations.

**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 for OCTL 2023-3, here for OCTL 2023-2, here for OCTL 2023-1, and here for the recent upgrades and affirmations.

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This is not an offer, solicitation of an offer, recommendation or advice to buy or sell any security, financial product or instrument. Our website is for informational purposes only. We do not guarantee the accuracy or completeness of information on or available through this website, and we are not responsible for inaccuracies or omissions in that information or for actions taken in reliance on that information. Please read any applicable disclosures before using or relying on information on or available through this website. Seek professional advice before investing in our securities.

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Octane Completes $400 Million Asset-Backed Securitization, Upsize from Initial $300 Million Target Issuance

by Elizabeth Griswold

June 1, 2023

Second AAA-Rating of 2023 Follows Period of Innovation and Continued Momentum

NEW YORK, June 1, 2023 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, 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.

OCTL 2023-2 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, and BB/BB respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The senior class of notes in Octane’s first asset-backed securitization of 2023, OCTL 2023-1, was also rated AAA by both S&P* and KBRA**.

Due to significant 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 continued to diversify its investor base by attracting several new investors through this issuance, 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,” said 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,” said 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 period of innovation for Octane. The company recently launched its newest digital soft pull tool, Prequal Flex, introduced advertising on its renowned Octane Media™ properties, which include Cycle World® and UTV Driver®, and rolled out a unique business-to-business (B2B) loyalty program, Octane Preferred, to its over 4,000 powersports dealer partners nationwide.

Octane has completed over $2.6 billion of asset-backed securitizations since launching the program in December 2019.

*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 for OCTL 2023-1 and here for OCTL 2023-2.

This is not an offer, solicitation of an offer, recommendation or advice to buy or sell any security, financial product or instrument.

Our website is for informational purposes only. We do not guarantee the accuracy or completeness of information on or available through this website, and we are not responsible for inaccuracies or omissions in that information or for actions taken in reliance on that information. Please read any applicable disclosures before using or relying on information on or available through this website. Seek professional advice before investing in our securities.

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Octane Completes $407 Million Asset-Backed Securitization, Upsize from Initial $305 Million Target Issuance

by Elizabeth Griswold

February 24, 2023

AAA-Rating from S&P and KBRA Follows Period of Strong Business Performance

NEW YORK, February 24, 2023 — Octane® (Octane Lending Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $406.9 million securitization (“OCTL 2023-1“) collateralized by its fixed-rate installment powersports loans. This is the largest of Octane’s seven transactions to-date and the first to receive a AAA-rating from both Standard & Poor’s (S&P)* and Kroll Bond Rating Agency (KBRA)**.

OCTL 2023-1 issued five classes of fixed-rate notes: Class A, Class B, Class C, Class D, and Class E, which S&P* and KBRA** rated as AAA/AAA, AA/AA+, A/A+, BBB/BBB, and BB/BB+, respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. This transaction follows a period of significant growth and expansion into new markets for Octane.

Through this issuance, the company continued to diversify its investor base with seven 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 $305.2 million to $406.9 million in notes. Truist Securities acted as lead bookrunner and structuring agent, with J.P. Morgan as joint bookrunner.

“We’re pleased and grateful to see such strong interest from our institutional investor partners, particularly in the current market environment, and will leverage their support to bring our fast, easy buying experience to even more customers,” said Steven Fernald, Chief Financial Officer at Octane. “Our capital markets strategy is one of Octane’s many differentiators and we will continue to build on the strength of both our program and underlying business in the future.”

In both of Octane’s two asset-backed securitizations in 2022, OCTL 2022-1 and OCTL 2022-2, the senior class of notes were rated AAA by Kroll Bond Rating Agency (KBRA)** and AA by S&P*. The company has now completed nearly $2.3 billion of asset-backed securitizations since launching the program in December 2019.

*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.

Press

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

by Frank Barletta

August 18, 2022

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

NEW YORK, August 18, 2022 — 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.

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.

*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.

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

Octane Completes $300 Million Asset-Backed Securitization to Drive Continued Growth

Octane Completes $380 Million Asset-Backed Securitization

Octane Completes $400 Million Asset-Backed Securitization, Upsize from Initial $300 Million Target Issuance

Octane Completes $407 Million Asset-Backed Securitization, Upsize from Initial $305 Million Target Issuance

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

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