Marlette Funding, a marketplace platform based in north Wilmington, announced it closed its first proprietary “MFT” securitization.
About $205 million of Best Egg collateral was financed via three classes of notes and one class of certificates with the loan sellers retaining a portion of notes and certificates.
The Class A, B and C fixed-rate Notes were rated Single-A, Triple-B and Double-B by Kroll Bond Rating Agency (KBRA).
The transaction was strongly received by a broad swath of investors and was significantly oversubscribed, a release noted.
The Marlette Funding “MFT” securitization is a significant milestone for the company, and a cornerstone of its long-term capital strategy, the release stated.
securitization markets represents the third major component of a diversified funding plan, which also includes building strong relationships with institutional investors and developing on-balance sheet asset-backed credit facilities,” said Paul Ricci, CFO of Marlette Funding.
The securitization, placed through Goldman Sachs, furthers Marlette Funding’s access to the broader ABS capital markets and sets a precedent for future transactions.
This transaction represents the second securitization collateralized by unsecured consumer loans originated by Cross River Bank using Marlette Funding’s Best Egg Platform. The first securitization, Citi Held for Asset Issuance 2016-MF1 closed on March 4, 2016.
“Our institutional partners value our ability and willingness to help them access the securitization markets,” said Jeffrey Meiler, CEO of Marlette Funding. “The elegance of this type of collaboration is it provides programmatic consistency regarding structure, reps and warranties, and risk sharing.”
More than $2B loans have been originated by Cross River through the Best Egg website since its inception in March of 2014.
Since launching in 2014, Marlette has provided services to help its bank partner originate more than $2 billion in loans and has connected over 125,000 personal loan customers with investors through the Best Egg platform. For more corporate information, visit MarletteFunding.com.
