Morgan Stanley, Goldman Sachs, Jefferies, JPMorgan Claim $ 600 Million Opportunity Warehouse Credit Facility
Oportun Financial Company (NASDAQ: OPRT), a financial services and technology company that uses artificial intelligence to inform its credit decisions, this week announced the closure of a new, $ 600 million, back-to-back warehouse credit facility to a portion of Opportunity secured and unsecured personal loans. The new facility includes commitments from Morgan Stanley Bank, NA, Goldman Sachs Bank USA, Jefferies Funding LLC and JPMorgan Chase Bank, NA
“Oportun has developed a new approach to tackle financial inclusion, which is a serious and important societal issue that other companies have struggled to tackle on a large scale,” said Raul Vazquez, CEO of Oportun. “Our lenders continue to play an important role in our capital structure, and we can offer an even greater amount of responsible and affordable capital to hard-working clients across the country with this new line of larger warehouses. “
“This greater range of warehouses will support our continued growth in the United States, enabling us to serve an addressable market that will have nearly doubled by the end of the year thanks to our recently launched banking partnership expansion,” said Jonathan Coblentz, Financial Director of Oportun. “Oportun has a successful track record of deploying capital to positively impact the lives of the clients we serve, and this new facility is a strong indication of our lenders’ support for our financially inclusive mission. We used the closing facility yesterday to repurchase the last of our most expensive securitizations issued in 2018. The new warehouse credit facility replaces a $ 400 million facility and reduces our cost of funds.
Since its founding, Oportun has successfully provided over 4.3 million loans and $ 10.5 billion in credit, mostly in the form of small dollar loans, saving clients over $ 1.9 billion in interest. and fees compared to other options generally available to people with little or no credit. the story. By reporting repayment performance to major credit bureaus, the company has also helped over 925,000 people begin to build credit histories.