The securitization received CommonBond’s highest ratings to date with a Moody’s rating of Aa3, in addition to a DBRS rating of AA. This is the fourth issuance for CommonBond; additionally, it is the largest the online lender has received thus far.
Working with CommonBond, Goldman Sachs acted as a co-sponsor, structuring agent, co-lead manager, and bookrunner. In addition to Goldman Sachs, Barclays and Citi were also instrumental in the securitization, serving as co-lead managers and bookrunners. Finally, Guggenheim Securities was an additional co-manager for the transaction.
David Klein, CEO of CommonBond, had the following to say in regards to the transaction: “Our highest-rated and largest deal yet clearly reflects both the growing investor and customer demand for CommonBond’s products. By maintaining maniacal focus on our category, and delivering the best possible experience for our members, we’ve been able to consistently provide investors with superior credit quality assets. We’re pleased to welcome a standout group of investors to this transaction. And as a programmatic issuer, we look forward to continuing to bring opportunities to market for investors over time.”
The student loan refinancing and consolidation company also reported that their inaugural securitization from 2015 was upgraded by DBRS. Since their founding in 2011, CommonBond has funded over $1 billion in student loans.
A few months ago, LendEDU reported on CommonBond’s slight uptick in variable interest rates on student loans. On April 1, variable interest rates on CommonBond refinancing stood between 2.56 percent and 6.48 percent, up from 2.32 percent and 6.18 percent in March.
Author: Mike Brown
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