Octane Closes $375MM ABS Transaction Secured by Powersport Equipment Loans

Octane, a financial technology company providing financing for recreational vehicles, closed a $375 million securitization (OCTL 2022-1), which is collateralized by fixed-rate installment powersports and outdoor power equipment loans. This transaction marks the company’s fifth securitization since launching the program in December 2019.

OCTL 2022-1 issued one money market eligible tranche, the Class A-1 notes, and five longer-term fixed-rate tranches, including Class A-2, B, C, D and E notes, which Kroll Bond Rating Agency and Standard & Poor’s rated as K1+(sf)/NR, AAA(sf)/AA(sf), AA(sf)/AA-(sf), A(sf)/A(sf), BBB(sf)/BBB(sf) and BB+(sf)/BB+(sf), respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. Additionally, Octane secured an upsize of the transaction from an initial target issuance of $275 million to $375 million in notes, making this issuance Octane’s largest asset-backed securitization transaction to date. J.P. Morgan acted as lead bookrunner and structuring agent, with Credit Suisse and Truist Securities acting as joint bookrunners for the transaction.

“The AAA rating and our ability to attract such notable institutional investment partners showcase the strength and resilience of our business, particularly within today’s volatile market environment,” Steven Fernald, CFO of Octane, said. “We are now even better positioned to continue our growth as we connect people with their passions and make buying fast, easy and accessible.”

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