Freedom Financial Network is A-Rated, Oversubscribed in First Securitization in Company History
June 20, 2018
SAN MATEO, Calif., June 21, 2018 /PRNewswire/ — Freedom Financial Network, LLC (FFN), the parent company of Freedom Financial Asset Management, has closed its first securitization, placing $256 million of investment grade notes after being significantly over-subscribed.
Underwriting the transaction were Credit Suisse, which served as the structuring agent, and SunTrust. The Class A and Class B fixed-rate notes were rated A (sf) and BBB (sf) respectively by DBRS, Inc. This marks the first time that a new issuer in a non-bank lending securitization has received an A rating on its senior tranche by DBRS.
This milestone follows news that the company crossed the $2 billion threshold of loans originated on the Freedom Financial Asset Management (FFAM) platform. Recently, FFAM also consummated a whole-loan purchase agreement with Atalaya Capital Management to buy approximately $1 billion in forward flow of whole loans over the next two years, expanding upon an existing multi-year partnership.
“Today’s news is a terrific milestone in our company’s continued growth story. We have forged strong relationships with key partners that help us to continue to build a smart, disciplined lending approach that has a differentiated position in the market,” says Joseph Toms, president of FFAM. “This first securitization demonstrates the leadership position that FFAM is developing in the market – one that is consistent with our goals to help consumers achieve financial wellness while producing consistent, predictable returns for our investors.”
The $2 billion in FFAM loan originations represents a 74 percent increase over the past year. The portfolio of unique loan products with market-leading performance and a growing position in the consumer market has provided exceptional results for both consumers and investor, says Toms. “The result is the ability to scale while providing much-needed customer loan products that deliver above-market returns to investors.”
Freedom Financial Asset Management offers personal loans to help consumers consolidate their debt, lower interest rates and convert revolving debt into lower-cost, more consumer-friendly installment loans. Using a combination of process, technology and analytics, along with a focus on human interaction to hear directly from consumers about their financial needs, FFAM provides long-term risk-adjusted returns for investors in consumer lending.
“Since its founding, Freedom has always focused first and foremost on building something great, rather than on growth for growth’s sake. Growth should be an output of our work, not an input. We do this by investing in people, process and technology and by taking a slow and steady approach to growing an organization that delivers significant value to our customers, employees, investors and communities,” says Andrew Housser, co-CEO of FFN. “The success of this offering is a great validation of the long-term approach to value creation that has been with us since Day 1.”