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Octane Completes $375 Million Asset-Backed Securitization, Upsize from Initial $275 Million Target Issuance

AAA Rating Testament to the Company's Underwriting and Consistent Business Performance

NEW YORK, May 12, 2022 /PRNewswire/ -- Octane® (Octane Lending Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $375 million securitization ("OCTL 2022-1") collateralized by its fixed-rate installment powersports and outdoor power equipment loans. This transaction follows a period of sustained growth and marks the company's fifth securitization since launching the program in December 2019.

Octane logo (PRNewsfoto/Octane)
Octane logo (PRNewsfoto/Octane)

OCTL 2022-1 issued one money market eligible tranche, the Class A-1 notes, and five longer-term fixed-rate tranches, including the Class A-2, B, C, D, and E notes, all of which Kroll Bond Rating Agency (KBRA)* and Standard & Poor's (S&P)** rated as K1+(sf)/NR, AAA(sf)/AA(sf), AA(sf)/AA-(sf), A(sf)/A(sf), BBB(sf)/BBB(sf), and BB+(sf)/BB+(sf), respectively in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. Additionally, Octane was able to secure an upsize of the transaction from an initial target issuance of $275 million to $375 million in notes, making this issuance Octane's largest asset-backed securitization transaction to date. J.P. Morgan acted as lead bookrunner and structuring agent, with Credit Suisse and Truist Securities as joint bookrunners.

"The AAA rating and our ability to attract such notable institutional investment partners showcase the strength and resilience of our business, particularly within today's volatile market environment," said Steven Fernald, Chief Financial Officer at Octane. "We are now even better positioned to continue our growth as we connect people with their passions and make buying fast, easy, and accessible."

This issuance comes during a period of sustained success for the company. During the first few months of 2022, Octane showed strong momentum in originations; significantly expanded its breadth of dealer partners; entered two new markets, tractors and trailers; and launched several new partnerships. The company closed 2021 GAAP net income positive.

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 the securities laws of such jurisdiction.

*KBRA's ratings are subject to all of the terms and conditions set forth in the related report and KBRA's website, which you should review and understand, and can be accessed here.

**The full analysis for S&P's ratings, including any updates, which you should review and understand, is available on standardandpoors.com and can be accessed here.

About Octane:
Octane® offers access to instant financing to fuel your lifestyle. Octane dramatically simplifies and accelerates the transaction process for major recreational purchases such as motorcycles, ATVs, and zero-turn lawn mowers by adding value at each stage of the buying journey. Octane offers automated underwriting, innovative credit products, and financing, through its in-house lender Roadrunner Financial, Inc.®. Octane reaches millions of enthusiasts through its editorial brands like Cycle World® and UTV Driver® and helps consumers buy their favorite products by pre-qualifying them on dealer and OEM websites. Octane is revolutionizing lending in underserved verticals within markets that account for tens of billions of dollars in annual transactions.

Octane is a remote-first fintech company with offices in NYC and Dallas and over 500 employees. In August 2021, Octane announced it raised $52 million in Series D funding bringing the company's valuation to over $900 million with more than $192 million in total equity funding raised to date. Visit www.octane.co.

Media Relations: Shannon O'Hara
Director of Corporate Communications at Octane

Investor Relations: Kartik Kothari
SVP of Corporate Development and Investor Relations at Octane


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