Oncourse Home Solutions Pioneers $1.66 Billion Securitization in Home Warranty Industry
In a bold move within the residential warranty industry, Oncourse Home Solutions has recently finalized a pioneering whole business securitization (WBS) valued at $1.66 billion. This innovative transaction is the first of its kind focused on home infrastructure warranty agreements, paving the way for a new asset class in the securitization market.
Located in Naperville, Illinois, Oncourse has established itself as a leading provider of home services, offering homeowners the flexibility they need for repairs and maintenance. The successful completion of this WBS allows Oncourse to tap into the investment-grade debt market, which is considered among the most favorable financial arenas available. This approach minimizes capital costs and enhances financial stability.
The securitization framework notably includes $325 million in revolving notes, alongside $1.33 billion in funded term notes. The latter component was strategically executed through dual channels: five-year tranches designed for institutional investors and seven-year private placements. The attractiveness of the five-year notes was highlighted by their pricing performance, which exceeded many recent similar issuances, largely due to robust demand from investors.
Oncourse’s revenue-generating assets, which comprise home warranty agreements and various partnership contracts, secure these notes. "This securitization transaction gives our company access to the investment-grade debt market, the deepest capital market in the world," stated Dale R. Gerard, CFO of Oncourse Home Solutions. Gerard emphasized the rigorous standards the company met throughout the transaction process, which involved significant interactions with rating agencies and investors, thereby affirming Oncourse's new standing in the industry.
The $1.66 billion financing arrangement comes on the heels of Oncourse's acquisition by funds managed by Apax Partners in late December 2021. Since then, the leadership has focused on numerous operational enhancements designed to augment customer acquisition and retention. The company's strategy has included the digital improvement of service offerings and exploring avenues for targeted merger and acquisition opportunities.
Ashish Karandikar, a Partner at Apax, expressed satisfaction with the collaboration between Apax and Oncourse. He noted the significance of pioneering such a sophisticated financing strategy, stating, "We are pleased that our partnership with the Oncourse team enabled us to achieve this distinctively 'trophy asset' financing structure for the company."
Jefferies served as the Sole Structuring Agent and Lead Bookrunner for this ABS offering, with Kirkland & Ellis stepping in as legal counsel for Oncourse. The transaction effectively closed on February 13, 2026, marking a significant date in the company's evolving journey.
As a trusted name that has served over 2 million homeowners across 43 states and the District of Columbia, Oncourse Home Solutions aims to simplify the process of home care for consumers by ensuring peace of mind through reliable service. The company strives to deliver effective home repair solutions, and this recent financial maneuver positions it for sustained growth and innovation in the future. For more information about Oncourse, please visit oncourse.com.
Located in Naperville, Illinois, Oncourse has established itself as a leading provider of home services, offering homeowners the flexibility they need for repairs and maintenance. The successful completion of this WBS allows Oncourse to tap into the investment-grade debt market, which is considered among the most favorable financial arenas available. This approach minimizes capital costs and enhances financial stability.
The securitization framework notably includes $325 million in revolving notes, alongside $1.33 billion in funded term notes. The latter component was strategically executed through dual channels: five-year tranches designed for institutional investors and seven-year private placements. The attractiveness of the five-year notes was highlighted by their pricing performance, which exceeded many recent similar issuances, largely due to robust demand from investors.
Oncourse’s revenue-generating assets, which comprise home warranty agreements and various partnership contracts, secure these notes. "This securitization transaction gives our company access to the investment-grade debt market, the deepest capital market in the world," stated Dale R. Gerard, CFO of Oncourse Home Solutions. Gerard emphasized the rigorous standards the company met throughout the transaction process, which involved significant interactions with rating agencies and investors, thereby affirming Oncourse's new standing in the industry.
The $1.66 billion financing arrangement comes on the heels of Oncourse's acquisition by funds managed by Apax Partners in late December 2021. Since then, the leadership has focused on numerous operational enhancements designed to augment customer acquisition and retention. The company's strategy has included the digital improvement of service offerings and exploring avenues for targeted merger and acquisition opportunities.
Ashish Karandikar, a Partner at Apax, expressed satisfaction with the collaboration between Apax and Oncourse. He noted the significance of pioneering such a sophisticated financing strategy, stating, "We are pleased that our partnership with the Oncourse team enabled us to achieve this distinctively 'trophy asset' financing structure for the company."
Jefferies served as the Sole Structuring Agent and Lead Bookrunner for this ABS offering, with Kirkland & Ellis stepping in as legal counsel for Oncourse. The transaction effectively closed on February 13, 2026, marking a significant date in the company's evolving journey.
As a trusted name that has served over 2 million homeowners across 43 states and the District of Columbia, Oncourse Home Solutions aims to simplify the process of home care for consumers by ensuring peace of mind through reliable service. The company strives to deliver effective home repair solutions, and this recent financial maneuver positions it for sustained growth and innovation in the future. For more information about Oncourse, please visit oncourse.com.
Topics Consumer Products & Retail）
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