Lendbuzz Raises $261.9 Million in Auto ABS
Deal News | Jan 14, 2025 | 83north (formerly greylock il)
Lendbuzz has raised $261.9 million through a securitization backed by a mix of subprime and prime auto loan receivables. The issuance, series 2025-1 by the Lendbuzz Securitization Trust, will result in four classes of notes with varying maturities until January 2032. Kroll Bond Rating Agency has detailed the repayment sequence and credit enhancements for these fixed-rate notes, which include overcollateralization, subordination, a cash reserve account, and excess spread. The pool comprises primarily used vehicle contracts and has a lower weighted average FICO score and loan-to-value ratio compared to previous transactions. At closing, the cash reserve account will be set at 1% of the initial pool balance.
Sectors
- Finance
- Automotive
Geography
- United States – The geography is implied based on the financial institutions and market norms mentioned in the article.
Industry
- Finance – The article involves asset-backed securitization, a financial process of pooling loans into securities.
- Automotive – The securitization is backed by a pool of auto loan receivables, indicating a direct involvement with the automotive industry.
Financials
- $261.9 million – The total amount raised through the issuance of asset-backed securities.
- 275 million – The projected collateral balance after its one-month pre-funding period according to KBRA.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lendbuzz | Target Company | Company | Lendbuzz is the company behind the auto loan securitization offering. |
| Kroll Bond Rating Agency (KBRA) | Rating Agency | Company | KBRA provided ratings for the notes in the Lendbuzz securitization trust. |
| 83north | Private Equity Firm | PE Firm | 83north, formerly Greylock IL, is a private equity firm involved as Lendbuzz's investor or partner. |