Press

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

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. 

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.

***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 Grew Originations by 74% in 2022 with its Fast, Easy Digital Experience

Entered 5 New Markets, Launched 9 New Partnerships, & Exceeded $1.2B in Annual Originations

Milestones:

  • In 2022, Octane surpassed $1.2B in annual originations, saw a 74% increase in originations year-over-year, and grew originations per dealer partner by 37%
  • The company continued to expand beyond powersports and entered five new markets: RVs, electric vehicles, tractors, trailers, and go-karts
  • Octane launched nine partnerships with OEMs, including industry leaders like Polaris Inc.
  • The company grew dealer digital integrations by 10X, with more than 450 dealers leveraging the award-winning Octane Prequal on their websites at year end
  • Octane closed two AAA-rated* securitizations, each of which was upsized to $375M

NEW YORK, January 31, 2023 — Octane® (Octane Lending Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, today announced key 2022 milestones on its journey to connect people with their passions and make buying better. 

In 2022, Octane saw significant business growth, increasing originations by 74% year over year through its in-house lender Roadrunner Financial, Inc. The company surpassed $1B in year-to-date originations in October 2022, one year after surpassing $1B in aggregate loans, and six years after issuing its first loan. Octane’s momentous growth is particularly notable given 2022’s pervasive inventory constraints which slowed category growth. 

At the same time, Octane strengthened relationships with its over 4,000 dealer partners, growing originations per dealer partner by 37% year-over-year and increasing the number of dealers who funded over ten loans with Octane on a monthly basis by 50%. The company has continued to differentiate itself as a lending partner through its seamless, digital-to-retail experience and innovative digital tools. In 2022, over 400 dealers added Octane’s award-winning, soft pull e-commerce tool, Octane Prequal, to their websites. Octane Prequal gives customers real credit offers while driving incremental ready-to-transact customers to dealerships, all with a soft credit pull. 

Octane also expanded the number of dealers and customers it serves through new partnerships and market expansions. In 2022, Octane launched nine partnerships with leading OEMs, including Polaris Inc. Octane also entered five new verticals: RVs, electric vehicles, tractors, trailers, and go-karts. By financing go-karts and e-bikes, which typically retail at a lower price point than traditional powersports vehicles, Octane can support dealer partners with their full price range of vehicles and provide financing for customers making smaller purchases. 

As Octane grew, it prioritized responsibly expanding credit access to underserved customers with its proprietary risk model which provides full spectrum credit coverage, helping more people to enjoy the outdoors than any other national lender. The company collaborated with FairPlay, the world’s first “Fairness-as-a-Service” solution for algorithmic decision-making, to help ensure that Octane continues to meet the highest level of compliance with applicable fair lending requirements and bring recreational lifestyle purchases within reach of more enthusiasts.

Octane maintained its strong underwriting discipline and consistent business performance and saw considerable investor demand for its loans. The company completed two asset-backed securitizations in 2022, OCTL 2022-1 and OCTL 2022-2, both of which were upsized to $375M and whose senior class of notes were rated AAA(sf) by Kroll Bond Rating Agency (KBRA)* and AA(sf) by S&P**. Octane has completed nearly $1.9 billion of asset-backed securitizations to-date.

Further, Octane bolstered its balance sheet by raising $100 million of corporate debt from Värde Partners, a leading global alternative investment firm. The transaction closed in October and is being used for general corporate purposes, including investing in activities that will support Octane’s long-term growth strategy. Additionally, Octane nearly doubled the amount of committed capital available to the business on even more favorable terms, bringing its total short-term revolving warehouse funding capacity to $700 million.

“2022 provided a challenging macro backdrop with inflation fueling an increasing cost of funds and expectations for increasing consumer credit losses. Despite these headwinds, we made significant progress across various strategic fronts, including scaling our products and entering new markets, while repositioning the business to face the new macro reality,” said Jason Guss, Co-Founder and CEO of Octane. “As we look into 2023, we believe our strategy positions us to successfully face down whatever unfolds in the macroeconomic environment.”

During 2022, the company received more than ten awards for its performance, products, leadership, and culture. Octane ranked in the top ten percent of the Inc 5000 list of the fastest growing private companies in America and was Certified as a Great Place to  Work®.

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.

Press

Octane Partners with UBCO to Bring a Seamless, Digital Buying Experience to Electric Bikes

The Fast-Growing Electric Vehicle (EV) Industry Marks Octane’s Fourth Market Entrance in 2022

NEW YORK, November 17, 2022 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, today announced its expansion into electric vehicles (EVs) through a strategic partnership with UBCO, the electric adventure motorcycle company based in Oregon and founded in New Zealand. 

Effective immediately, customers and dealers of UBCO’s fully electric suite of adventure bikes will benefit from Octane’s fast and easy buying experience. Octane’s digital platform and simple application allow customers to upload documents and apply for financing online, saving time at closing. Octane also provides soft-pull digital tools that enable dealers to instantly prequalify customers without impacting their credit scores. Through Octane’s in-house lender, Roadrunner Financial, Inc.®, UBCO dealers can offer competitive rates and flexible terms to a wide range of prime and non-prime customers, making electric bikes accessible to more customers. 

UBCO has seen its dealership and customer base growing fast in the US,  alongside the nation’s growing hunger for adventure and off-road exploration. 

“UBCO wants to get more people on two-wheels than ever before,” said Phil Harrison, Chief Revenue Officer at UBCO. “Up to 92% of Americans currently don’t participate in Powersports and we want to change that by providing approachable, easy to ride vehicles that expand Powersports to the masses. Octane’s purely digital experience is a key part of the value proposition to our customers.” 

“We’re thrilled to partner with UBCO to bring our seamless buying experience to even more enthusiasts and to fuel our customers’ lifestyles in an environmentally-friendly way,” said Jason Guss, CEO and Co-Founder of Octane. “The EV industry allows us to merge technology, sustainability, and innovation while tapping into a rapidly-expanding market and delivering on our mission to connect people with their passions.”

Today’s announcement follows a period of growth for Octane. The company recently surpassed $1B in year-to-date originations and brought its digital buying experience to three new markets: RVs, tractors and trailers

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Press

Octane Surpasses $1B in Originations in 2022

Milestone Follows Period of Sustained Business Growth and Expansion into New Markets

NEW YORK, October 12, 2022 — Octane® (Octane Lending Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, today announced it has originated over $1B in loans in 2022 through its in-house lender Roadrunner Financial, Inc

This significant milestone follows a period of sustained business growth for the company. Octane increased originations during the first three quarters of the year by 75% year over year. During the same period, the company grew its number of dealer partners by 26% and saw originations per dealer increase by 39%. The company’s success is particularly notable given ongoing inventory constraints and market volatility. Octane surpassed $1B in total loans in May 2021, five years after issuing its first loan. 

 Octane has seen considerable investor demand for its loans, a testament to the company’s underwriting and consistent business performance. Octane completed two asset-backed securitizations thus far in 2022, OCTL 2022-1 and OCTL 2022-2, both of which were upsized to $375M and whose senior class of notes were rated AAA(sf) by Kroll Bond Rating Agency (KBRA)* and AA(sf) by S&P**.

Today’s news comes on the heels of Octane’s expansion into additional industries. Last month, the company announced its entrance into the RV market, following its foray into tractors and trailers earlier this year. Octane has also enhanced its seamless, digital-to-retail experience and growing number of digital tools, including the award-winning, soft pull e-commerce tool, Octane Prequal, which gives customers real credit offers while driving incremental ready-to-transact customers to dealerships. 

“I’m incredibly proud of our team for their hard work in bringing speed and ease to the buying experience and helping us connect people with their passions,” said Mark Davidson, Co-Founder and Chief Revenue Officer of Octane. “I also want to thank our over 30 OEM and 4,000 dealer partners for their support and trust as we transform our industry and make buying better.”

*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.

Press

Octane Enters the RV Market to Streamline and Digitize the Buying Experience

Marks Third Market Entrance for Octane in 2022

NEW YORK, September 21, 2022 — Octane® (Octane Lending Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, today announced its entrance into the Recreational Vehicle (RV) market. Effective immediately, RV customers, dealers, and Original Equipment Manufacturer (OEMs) will benefit from Octane’s fast and easy digital buying experience. 

The RV segment is Octane’s third new vertical in 2022, following its recent expansion into tractors and trailers. The RV market is a logical progression for the company given Octane’s success in the adjacent markets of Powersports and Outdoor Power Equipment (OPE) and the RV industry’s paucity of available digital tools. 

Historically, buying an RV has been a slow and manual process. By combining cutting-edge technology with innovative risk modeling and superior service, Octane delivers a seamless, end-to-end buying experience that speeds up transactions to benefit customers, dealers, and OEMs alike.

Octane adds value at each stage of the customer journey. Customers can shop with confidence using Octane Prequal, the company’s ecommerce tool that provides an instant financing decision through its in-house lender, Roadrunner Financial, Inc., with no impact to a customer’s credit score. Octane’s digital financing platform enables customers to upload documents and complete their applications online before ever walking into a dealership, which saves time at closing. Additionally, through its in-house loan servicing arm Roadrunner Account Services, Octane supports customers with a superior customer experience through the life of each loan. 

“We’re excited to transform buying in the RV market with our seamless user experience,” said Jason Guss, CEO of Octane. “By expanding into RVs, we’re better able to deliver on our mission to connect people with their passions and make lifestyle purchases fast, easy, and accessible.” 

Octane also supports dealers and OEM partners by enabling consumers to prequalify for financing on dealer and OEM websites, bringing web visitors into the transaction flow and driving incremental, qualified buyers to dealerships for a superior digital-to-retail experience. 

Furthermore, for select strategic partners, Octane customizes its proprietary technology platform and tailors its lending and servicing capabilities to enable partners to better support their own customers throughout the entire buying journey with a superior, branded (private label) experience. 

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