#USA #Home Improvement #Wayne #PowerPay #ABS Deal

PowerPay's Landmark Home Improvement ABS Transaction

In a groundbreaking move for the home improvement finance industry, PowerPay has announced the imminent issuance of its latest Asset-Backed Securitization (ABS), specifically referred to as PowerPay Issuance Trust 2025-1 (PWRP 2025-1). This substantial transaction is targeted to be in the vicinity of $500 million, marking a monumental leap compared to the company’s first ABS transaction last year, which stood at $118.9 million with PWRP 2024-1. This means that the upcoming deal is set to become one of the top five largest home improvement ABS securities ever launched in the market.

The details surrounding this transaction reveal significant confidence from the financial community. As part of the process leading up to the closing, scheduled for October, KeyBank will be serving as the Lead Underwriter, while Kroll Bond Rating Agency (KBRA) is expected to undertake the rating responsibilities for the notes. The created structure and impressive size of this ABS transaction highlights PowerPay’s meteoric growth and reflects the substantial institutional trust in the quality of the loans produced through its innovative platform.

This sizable increase in scale is an important validation of PowerPay’s proficiency in originating, underwriting, and servicing a high volume of quality assets. The upgrade in ratings for its inaugural transaction has enabled an elevation in the ratings cap for the upcoming 2025-1, and this new transaction will likely introduce enhanced credit protection levels across all tranches. This shift mirrors the improved operational stability PowerPay has demonstrated and the overall expansion of its underlying loan portfolio.

Mike Petrakis, the Founder and CEO of PowerPay, acknowledged the growing market interest for their assets since the launch of their first ABS transaction. He stated, “PWRP 2025-1 is a testament to the hard work of our team and the quality of the credit we originate. This transaction will further enhance PowerPay's proprietary AI underwriting technology, allowing us to expand our lending capacity even further, which solidifies our competitive edge in embedded finance within the home improvement and patient finance sectors.”

About PowerPay

PowerPay stands out as a leading financial technology platform, headquartered in Wayne, Pennsylvania. The company provides point-of-sale financing solutions for a substantial network of around 15,000 contractors and medical practice networks. With its AI-powered platform, PowerPay has achieved a staggering milestone, reporting nearly $13 billion in processed consumer loans, demonstrating its pivotal role in empowering financing options within the home improvement and healthcare sectors.

PowerPay’s revolutionary approach caters to those looking to finance home improvements or medical expenses efficiently, thus streamlining what has traditionally been a cumbersome process. Their platform not only enhances accessibility to funds but also supports the growth of the contractors and medical establishments relying on PowerPay's services.

In conclusion, as PowerPay gears up for the closing of this historic ABS transaction, it is evident that the company is not only setting benchmarks within the home improvement and patient finance industries but also shaping a future where financial technology is intricately woven into the fabric of consumer financing.

Through its innovative use of technology and an unwavering commitment to quality, PowerPay continues to lead the charge in transforming how consumers access financing solutions. This monumental ABS issuance is just one example of how PowerPay adapts and grows in the ever-evolving financial landscape.