Significant Momentum in Octane’s Powersports and Recreational Vehicle (RV) Business

Octane saw considerable growth in both its powersports and RV business in 2024. The company grew originations through its in-house lender, Roadrunner Financial®, Inc., by 36 percent year-over-year, closing the year at more than $1.6 billion in 2024 originations. Octane also reached several milestones last year, surpassing $4 billion in aggregate originations in February and $5 billion in aggregate originations in September. The company continued to see strong growth in the RV market, doubling its RV originations for the second year in a row. At the same time, it expanded its relationships with key powersports original equipment manufacturers (OEMs), launching full-spectrum financing with both Kawasaki and CFMOTO. 

Equity Financing Fuels Product Innovation and Expansion into New Markets

Octane raised $50 million in its Series E funding round, bringing its total equity funding raised since inception to $242 million. This investment fueled the company’s entrance into the marine market with full-spectrum credit coverage. During the course of 2024, Octane introduced over 100 new products and product enhancements to make buying better for dealer partners and their customers, including Dealer Portal 2.0, a significantly upgraded version of its industry-leading dealer platform. Octane’s soft-pull prequalification tools, Octane Prequal® and Prequal Flex®, continued to help consumers quickly and easily apply for financing with more than 1200 dealers using each tool, respectively; nearly 400,000 powersports applications were sent to partner dealers through the two digital tools. The company also partnered with RideNow, the largest powersports retailer in North America, to launch RideNow Finance, a private label partnership that drives more sales for RideNow Powersports Dealerships through digital tools, full-spectrum financing, and branded lifecycle marketing. 

Strong Financial Performance Combined with Historic ABS Transaction Concludes a Successful Year in Capital Markets

Octane continued to diversify its capital markets strategy in 2024. The company completed four asset-backed securitizations (ABS), which were supported by over 100 investors. The first three transactions,  OCTL 2024-1, OCTL 2024-2, and OCTL 2024-3, were backed by powersports collateral. The fourth transaction, OCTL 2024-RVM1, was Octane’s first transaction backed wholly by RV and Marine collateral and the first deal of its type in two decades. In addition to completing more than $4 billion of ABS deals to date, other notable 2024 accomplishments include completing a $500 million forward-flow deal with funds managed by AB CarVal, announcing two separate whole loan sales totaling $280 million to Yieldstreet, and completing a $200 million whole loan sale to funds managed by AB CarVal. Octane maintains approximately $1 billion in revolving capacity.  Additionally, the company realized strong financial performance in 2024; year-over-year Octane grew top line revenue by 46%, grew profit by 62% (for a gross profit margin of 41%), and increased GAAP net income by approximately 650%, all new record highs*.  

Key Leadership Appointments and New Headquarters in Octane’s 10th Year in Business

In 2024, Octane made several executive appointments, brought in key talent, and garnered recognition for its performance, culture, and leadership. Octane appointed its first President, Steven Fernald, who continues to serve as the company’s Chief Financial Officer in addition to overseeing its Powersports and Outdoor Power Equipment (OPE) business, and announced the appointment of a new Chief Risk Officer, Mark Molnar, an executive with over thirty years of risk experience at both established banks and fintech companies. 

Octane also strengthened its Sales and Engineering expertise by acquiring the team behind The Lasso, a platform that links car sellers directly to a network of hundreds of top-notch dealerships. Nate Mihalovich, formerly the CEO and co-founder of The Lasso, joined Octane as SVP of New Verticals, along with four talented engineers and salespeople. Octane will leverage Mihalovich and The Lasso team’s technical skills, entrepreneurial spirit, and experience building pipelines and relationships to help Octane strengthen its offering and expand into new markets.

In 2024, Octane celebrated its tenth anniversary, opened a new headquarters in Manhattan, and won nearly 30 awards, including ranking on the Inc. 5000 list of the fastest growing private companies for the third year in a row, making the Technology Fast 500 awarded by Deloitte, LLP for the second year in a row, and being named one of the Best Places to Work in Dallas for the second year in a row. Octane’s CEO and Co-founder, Jason Guss, continued to receive accolades for his leadership and vision, being named an Entrepreneur Of The Year® 2024 New York Award Finalist for the second time and receiving the Powersports Finance Achievement Award in Leadership.

“The past year was the most successful in Octane’s ten-year history, made possible thanks to the creativity and effort of our team and the ongoing support of our esteemed dealer, OEM, and investor partners,” said Guss. “We intend to build on this momentum in 2025, as we reaffirm our commitment to making buying better through a fast, seamless financing experience.”

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.

*Financial performance based on 2024 unaudited company financial statements.

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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.

NEW YORK, December 20, 2024 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $125.76 million securitization (“OCTL 2024-RVM1“). The notes will be collateralized by a pool of retail installment loans issued through Octane’s in-house lender, Roadrunner Financial®, Inc. that are secured by new and used recreational vehicles (RVs), powerboats, and pontoon hybrids.

This is Octane’s first transaction under its new RV/Marine shelf, denoted with the “RVM” ticker. Octane has completed 14 asset-backed securitizations since launching its program in December 2019, including OCTL 2024-1, OCTL 2024-2, and OCTL 2024-3 in 2024. In the company’s last six powersports ABS transactions, RV and marine loans comprised approximately 1.35% or less of the pool.

OCTL 2024-RVM1 consists of five classes of fixed-rate notes: Class A, Class B, Class C, Class D, and Class E, which Standard & Poor’s (S&P)* rated as AAA, AA, A, BBB, and BB respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. ATLAS SP Securities acted as lead manager and structuring agent, with Truist Securities serving as joint bookrunner, and J.P. Morgan Securities and Mizuho serving as co-managers. 

“We are excited to build on our successful ABS track record by issuing our first securitization wholly backed by RV- and marine-collateral, which was extremely well received by the market,” said Steven Fernald, President and Chief Financial Officer at Octane. “Thanks to the strong interest from a large number of new investors as well as our existing, long-term investor partners, we are well positioned to continue to meaningfully grow our business in 2025 and beyond.”

Octane entered the RV market in 2022, doubled originations in 2023, and is on track once again to double its RV originations year-over-year in 2024. Octane first began financing pontoons in 2022 and entered the broader marine market this fall.

Octane continues to maintain a diverse capital markets strategy. In addition to completing more than $4 billion of asset-backed securitizations to date, the company surpassed $5B in aggregate originations in September 2024 and has announced or completed over $1 billion of whole loan sales since December 2023, including with large asset managers, alternative asset managers, and credit unions, while maintaining approximately $1 billion in revolving debt capacity. Earlier this year, Octane completed its Series E funding round, bringing its total equity funding raised since inception to $242 million.

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.

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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.

NEW YORK, December 19, 2024 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, and CFMOTO, a world-class powersports manufacturer, announced a new agreement to provide promotional financing for prime customers in the United States.  

Effective immediately, prime and non-prime consumers can qualify for financing for CFMOTO’s full line of ATVs, side-by-sides, and motorcycles through Octane’s in-house lender, Roadrunner Financial®, Inc. At the same time, CFMOTO’s network of over 600 dealers in the United States—more than a quarter of which have the award-winning soft-pull tool, Octane Prequal®, on their websites—will benefit from Octane’s fast and easy digital financing experience as well as competitive terms and flexible rates for its customers. 

“We’re excited to strengthen and expand our relationship with CFMOTO and bring our seamless, digital financing experience to even more of its customers,” said Jon Vestal, SVP, Head of Powersports & OPE at Octane. “By offering full-spectrum financing and digital tools, we’re giving CFMOTO dealers more ways to help people purchase a vehicle and connect with their passion.”

“We are thrilled to expand our partnership with Octane to offer enhanced financing options for our customers and dealers,” said Jake Mirabel, Vice President Sales at CFMOTO. “Octane’s innovative digital tools and full-spectrum financing make it easier than ever for our customers to access the vehicles they love, while empowering our dealers with competitive terms and streamlined processes. Together, we’re driving growth and delivering an exceptional buying experience.” 

Since 2016, Octane has partnered with CFMOTO to offer financing solutions for credit-worthy customers just outside of the traditional “prime” range through Roadrunner Financial®, Inc. 

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NEW YORK, November 14, 2024 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $326 million securitization (“OCTL 2024-3“) collateralized by fixed-rate installment powersports loans issued through its in-house lender, Roadrunner Financial®, Inc. Octane has issued more than $4 billion of asset-backed securities (ABS) since launching the program in December 2019. This is the company’s 12th ABS transaction.

OCTL 2024-3 consists of 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 Atlas SP Securities, Mizuho, and Truist Securities serving as joint bookrunners. In this latest ABS transaction, Octane continued to diversify its investor base while also maintaining the support of existing institutional investors.

“Thanks to the support of our esteemed institutional investors, Octane reached a significant milestone with this transaction – issuing over $4 billion of asset-backed securities in less than five years,” said Steven Fernald, President and Chief Financial Officer at Octane. “We were pleased to see such high demand for our paper among both new and existing partners, which allowed our syndicate of banks to reduce credit spreads materially from their initial guidance through final pricing to our lowest levels since 2021. Our robust capital markets execution gives us even greater flexibility as we continue to grow our business while maintaining strong credit performance.”

In addition to completing two other asset-backed securitizations, OCTL 2024-1 and OCTL 2024-2, Octane has diversified its capital markets strategy in 2024. Notable transactions include a $500 million forward-flow deal with funds managed by AB CarVal, two separate whole loan sales totaling $280 million to Yieldstreet, an evergreen forward flow transaction with a credit union, and a $200 million whole loan sale to funds managed by AB CarVal.

The ABS transaction announced today follows several significant milestones for the company. Octane recently entered the marine market, launched RideNowFinance, a private label partnership with the largest powersports retailer in North America, and surpassed $5B in aggregate originations. Earlier this year, Octane completed its Series E funding round.

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.

NEW YORK, October 31, 2024 — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced today that it has sold a portfolio of $200 million of fixed-rate installment powersports loans to funds managed by AB CarVal, an established global alternative investment manager. The portfolio of whole loans was newly originated by Octane’s in-house lender, Roadrunner Financial®, Inc., and will be serviced by Octane’s in-house loan servicer, Roadrunner Account Services, LLC.

This is the second transaction between Octane and AB CarVal. Last month, the companies announced the close of a $500 million forward-flow deal. 

Octane will leverage the proceeds from this sale to capitalize on the significant momentum it has been seeing in its business. In September, the company surpassed $5 billion in aggregate originations, and it announced its entrance into the marine market in October. 

“We’re excited to strengthen our relationship with AB CarVal, one of the world’s preeminent global asset managers, through this second transaction,” said Steve Fernald, President and CFO of Octane. “By continuing to successfully execute on our capital markets strategy, we are better able to support our customers as well as our OEM and dealer partners through our fast, user-friendly, full-spectrum financing experience.”

“We continue to be excited about Octane’s differentiated underwriting capabilities and believe that specialized consumer whole loan portfolios offer compelling opportunities for those with deep expertise and experience in asset-based finance,” said P.J. Collins, director with AB CarVal. 

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About AB CarVal

AB CarVal is an established global alternative investment manager and part of AllianceBernstein’s Private Alternatives business. Since 1987, AB CarVal’s team has navigated through ever-changing credit market cycles, opportunistically investing $151 billion in 5,800 transactions across 82 countries. Today, AB CarVal has approximately $19 billion* in assets under management in corporate securities, loan portfolios, structured credit and hard assets. Additional information about AB CarVal may be found at www.abcarval.com.

*AUM is comprised of fee-earning AUM and fee-eligible AUM. Fee-earning AUM includes those assets currently qualified to generate management fees. Fee-eligible AUM includes capital that is committed to an AB CarVal Fund but is currently uncalled or recallable. The number represented here excludes assets under AB CarVal’s management that are not generating management fees due to the maturity of the Fund but includes amounts that do not generate management fees solely due to AB CarVal’s decision not to charge management fees.