Lendbuzz – a fintech company utilizing AI to provide auto loans to a broad spectrum of borrowers – recently announced that it has closed a $235 million securitization collateralized by a pool of retail automobile contracts made to obligors and secured by new and used automobiles, light duty trucks, and vans.
LBZZ 2023-3 will issue four classes of notes: Class A-1, Class A-2, Class B, Class C, which Moody’s Investors Service (Moody’s) and Kroll Bond Rating Agency (KBRA) rated as NR/K1+(sf), A3/AA-(sf), Baa3/BBB+(sf) and NR/BB+(sf). J.P. Morgan acted as lead book-runner and structuring agent, with Goldman Sachs and RBC as joint bookrunners.
This deal – which is Lendbuzz’s third securitization of 2023 and fifth since launching the program – is its largest transaction in program history and continues a period of record-breaking success for the company. And this securitization also included over 20 distinct investors, expanding Lendbuzz’s program with eight first-time investors.
Lendbuzz is an AI-based financial technology company that helps consumers obtain fair access to credit after purchasing a vehicle. Powered with alternative data and machine learning algorithms, Lendbuzz can assess the creditworthiness of consumers with limited credit history, a group underserved by traditional banks. Through the company’s auto dealership partners, Lendbuzz offers consumers attractive financing solutions while opening up opportunities for those dealerships to serve a more diversified customer base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.
KEY QUOTE:
“We are excited to have successfully closed our most recent ABS transaction despite the challenging market conditions. This milestone transaction underscores our investors’ confidence in the strength of our credit model and their belief in the continued high performance of our bond offerings.”
— George Sclavos, Chief Financial Officer at Lendbuzz
