#United States #New York #Securitization #Octane Lending #RV financing

Octane Completes $126 Million Securitization

In a pivotal move for the recreational financing sector, Octane® (Octane Lending, Inc.®) has announced the completion of its first asset-backed securitization (ABS), totaling $126 million. This significant financing operation involves securing retail installment loans backed by recreational vehicles (RVs) and marine collateral, marking a vital expansion for the company into the RV and marine markets.

Launched under the ticker "RVM", the securitization, identified as "OCTL 2024-RVM1," represents Octane's ambition to further innovate and streamline the purchasing process for outdoor enthusiasts. This initiative offers loans for both new and used recreational vehicles, as well as powerboats and pontoon hybrids, showcasing the company's commitment to catering to a diverse clientele.

This securitization has received impressive ratings from Standard & Poor’s, with the five classes of fixed-rate notes being rated AAA, AA, A, BBB, and BB. This is a clear indication of the strong market confidence in Octane’s business model, which has consistently attracted new investors along with existing long-term partners. Steven Fernald, President and CFO at Octane, expressed excitement about the positive market reception and the company’s intention to leverage this momentum to fuel further growth in the upcoming years.

Since Octane's inception in 2014, the company has rapidly expanded its footprint in the financing sector, facilitating over $4 billion in asset-backed securitizations. The successful completion of this ABS represents the 15th transaction undertaken by the company, reflecting Octane's remarkable growth trajectory. With a doubling of origination rates in 2023 and expectations to repeat this growth in 2024, Octane shows a robust path forward.

Further, Octane’s efforts are bolstered by its innovative financing solutions and collaborative approach with over 40 OEM partner brands and 4,000 dealer partners. The company not only aims to streamline financing for lifestyle purchases but also engages consumers through informative editorial platforms like Octane Media™, which includes popular brands such as Cycle World® and UTV Driver®.

In addition to the $126 million ABS transaction, Octane has reported over $1 billion in whole loan sales and has also completed its Series E funding round, boosting its total equity raised to $242 million since its inception. This highlights their commitment to sustainability and growth amid increasing demand for recreational vehicles and marine equipment.

As Octane continues to pave the way for innovations in recreational vehicle financing, its focus on leveraging technology and maintaining a diversified capital strategy positions it well for future success in a competitive market. The completion of this $126 million securitization stands testament to Octane's effective operational strategies and visionary leadership, promising continued growth and unparalleled service excellence in the years to come.

In conclusion, Octane is not just revolutionizing the financing experience but also inspiring a new generation of outdoor enthusiasts to chase their passions with confidence. With each successful funding round and securitization, the company reinforces its status as a leader in the recreational finance industry.