CircleBack Lending, an online marketplace that offers installment loans to consumers, has completed its first securitization deal, the Boca Raton, Fla., firm said Friday.
The $106 million securitization was structured and sold by the investment banking firm Jefferies LLC, according to a CircleBack press release.
The deal represents the partial realization of plans, announced last September, for Jefferies to bundle and sell up to $500 million of bonds linked to CircleBack loans.
"This successful bond offering marks the first of what we will be many more to come with Jefferies and others," CircleBack Chief Executive Officer Michael Solomon said in the press release.
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CircleBack offers fixed-rate installment loans of $3,0001 to $35,000. Annual percentage rates on 36-month loans range from 6.63% to 36%, depending on the borrower's creditworthiness, according to the company's website. CircleBack's loans are purchased by institutional investors.
As the so-called marketplace lending industry has shifted away from its origins as a way for individual investors to be matched up with specific borrowers, securitization has become a more popular way of funding loans.
Securitization deals involving loans from Prosper Marketplace, CommonBond and Social Finance have been announced in recent months.