Freedom Financial Network Closes Third Securitization, Oversubscribed by 348%
May 2, 2019
SAN MATEO, Calif., May 2, 2019 /PRNewswire/ — Freedom Financial Network, LLC (FFN), the parent company of Freedom Financial Asset Management, has closed its third securitization, placing $408 million of notes after being oversubscribed by 348%.
Consistent with its first two securitizations, announced in 2018, underwriting the transaction were Credit Suisse, which served as the lead manager and structuring agent, and SunTrust, which served as a joint book runner. In addition, this securitization is bringing in 33 investors, 18 of which are new investors in the program.
FFN now has issued more than $1 billion in bonds. The company has originated more than $3 billion in loans on its Freedom Financial Asset Management (FFAM) platform.
With this securitization, FFN’s asset-backed securities (ABS) program added Moody’s as a rating agency with an investment-grade rating. The Class A, and Class B fixed notes were rated A3 (sf), Baa3 (sf) by Moody’s. The Class A, Class B and Class C fixed-rate notes were rated A (sf), BBB (HIGH) (sf) and BB (HIGH) (sf) respectively by DBRS, Inc.
“The deep and diverse investor demand we experienced for this transaction, along with Moody’s rating, is gratifying,” says Joseph Toms, president of FFAM. “We also are encouraged by the strong response investors have shown to the higher percentage of our FreedomPlus near-prime, to prime, product in this transaction. This strong reception suggests that our long-term strategy to offer a holistic debt solution to consumers, with broad coverage from subprime to prime, is not only viable for consumers, but also for investors.”
FFAM 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.
“The success of this offering confirms that we are building a sustainable and successful, long-term lending platform that benefits consumers and investors alike,” adds Toms. “We are excited to keep striving toward our vision of becoming the premier debt solution company for U.S. consumers.”