Purchasing Power, a subsidiary of PROG Holdings, announced it has closed a $225 million asset-backed securities transaction backed by a diversified pool of consumer receivables generated through the company’s payroll purchase platform.
The issuance, called Purchasing Power Funding 2026-A, was structured as a multi-tranche offering and attracted a broad group of institutional investors. The deal achieved a blended rate of 4.87%, reducing borrowing costs by more than 180 basis points compared with the company’s previous funding arrangement in 2024.
The securitization marks the first time a subsidiary of PROG Holdings has accessed the asset-backed securities market. The milestone follows PROG Holdings’ acquisition of Purchasing Power in January 2026 and is part of efforts to strengthen the company’s funding structure and financial performance.
The transaction received multiple credit ratings from Kroll Bond Rating Agency. The Class A notes were rated AAA, the Class B notes were rated AA, the Class C notes received an A rating, the Class D notes were rated BBB, and the Class E notes were rated BB-.
Proceeds from the transaction will be used to repay existing financing facilities and support new originations through Purchasing Power’s payroll-deduction purchasing platform.
Barclays Capital served as structuring agent and initial purchaser for the offering, while Wilmington Trust, National Association acted as trustee and collateral administrator.
Purchasing Power provides financial wellness solutions and employee purchase programs that allow workers to buy consumer products and services through payroll deductions. The platform is offered to millions of employees through large organizations including Fortune 500 companies, associations, and government agencies.
PROG Holdings is a fintech holding company headquartered in Draper, Utah, offering payment and consumer financial products through brands including Progressive Leasing, Purchasing Power, Four Technologies, and MoneyApp.
KEY QUOTE:
“This successful securitization transaction reflects the strength and resilience of Purchasing Power’s payroll-deduction purchasing model and the quality of its underlying receivables. We are pleased with the strong investor demand and view this as an important step in our post-acquisition efforts to improve Purchasing Power’s funding arrangements and overall performance.”
Lee Wright, President Of Purchasing Power
