CommonBond, a leading financial technology company that helps students and graduates pay for higher education, today announces the close of a $248 million securitization of refinanced student loans.
The offering’s most senior notes achieved AA ratings from Moody's, S&P, and DBRS – Aa2, AA, and AA (high), respectively – the company’s highest ratings to date.
The transaction was CommonBond’s fifth and largest to date. Investors submitted $1 billion in orders, making the deal more than four times oversubscribed. Goldman Sachs served as structuring agent, co-lead manager, book-runner, and co-sponsor. Barclays and Citi also served as co-lead managers and book-runners on the transaction, while Guggenheim Securities served as co-manager.
“Investor demand for CommonBond paper has never been greater,” said David Klein, CommonBond CEO and co-founder. “The strong market reception is a reflection of our pristine credit quality, continued ratings progression, and track record of consistent results.” Klein added, “As a programmatic issuer, we look forward to continuing to bring consistently high performing bonds to the market, providing investors with world-class capital deployment options.”
The transaction was the first of CommonBond’s to be rated by S&P, who assigned AA ratings to the transaction, alongside similar ratings from Moody’s and DBRS. Moody’s and DBRS also recently upgraded CommonBond’s ratings on previous deals in recognition of the company’s strong credit performance.
The securitization marks a significant period of growth for CommonBond, which earlier this year introduced student loans for current undergraduate and graduate students nationwide, to complement its established student loan refinance product. CommonBond is the only financial technology company to offer a full suite of student loan solutions, including new student loans to current students and refinanced student loans to graduates. The company has funded over $1 billion in student loans, and continues to grow its enterprise platform, CommonBond for Business™ – which enables employers to contribute a monthly payment to employees’ student loans, in addition to offering an evaluation tool for employees to determine their best repayment options.