NEW YORK – Octane (Octane Lending, Inc.), the “fintech” – a term for a financial company using innovative technology that the company says is revolutionizing the shopping experience for major recreational purchases – announced that it has closed a securitization of 125 .76 million dollars (OCTL 2024-RVM1). The notes will be secured by a pool of retail installment loans issued through Octane’s in-house lender, Roadrunner FinancierInc. that are secured by new and used recreational vehicles (RVs), motorboats and hybrid pontoons.
This is Octane’s first transaction under its new RV/Marine shelf, designated by the ticker symbol “RVM.” Octane has completed 14 asset-backed securitizations since launching its program in December 2019, including OCTL 2024-1, OCTL 2024-2And OCTL 2024-3 in 2024. In the company’s last six powersports ABS transactions, RV and marine loans represented approximately 1.35% or less of the pool.
OCTL 2024-RVM1 consists of five classes of fixed rate notes: Class A, Class B, Class C, Class D and Class E, which Standard & Poor’s (S&P)* has rated AAA, AA, A, BBB and BB. respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. ATLAS SP Securities acted as lead manager and structuring agent, Truist Securities as joint bookrunner and JP Morgan Securities and Mizuho as co-managers.
“We are pleased to build on our history of success in ABS by issuing our first securitization fully backed by RV and marine collateral, which has been extremely well received by the market,” said Steven Fernald, President and Director financial officer of Octane. “Thanks to strong interest from a large number of new investors as well as our existing long-term investor partners, we are well positioned to continue to significantly grow our business in 2025 and beyond.”
Octane entered the RV market in 2022has doubled its productions in 2023 and is on track to double its VR productions again year-over-year in 2024. Octane first started pontoon financing in 2022 and entered the wider world marine market this fall.
Octane continues to maintain diversity capital markets strategy. In addition to having completed more than $4 billion in asset-backed securitizations to date, the company exceeded $5 billion in total amounts in September 2024 and has announced or completed more than $1 billion in whole loan sales since December 2023, including to large asset managers, alternative asset managers and credit unions, while maintaining capacity of revolving debt of approximately $1 billion. Earlier this year, Octane has completed its Series E funding roundbringing its total equity raised since its creation to $242 million.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws. of such jurisdiction.
*S&P’s complete ratings analysis, including updates, for you to view and understand is available at spglobal.com and is accessible here.