Avant, an online consumer lender based in Chicago, is shoring up its funding base with a pair of new transactions.

It has announced a $255 million bond deal that is expected to provide debt financing for its U.S. installment loan business. The safest category of bonds in the securitization received an A-minus rating from Kroll Bond Rating Agency.

Avant also said that it is renewing a $392 million revolving warehouse debt facility, with J.P. Morgan and Credit Suisse serving as senior lenders.

The two funding deals may reduce cost-cutting pressure at Avant, which like numerous other online lenders has been grappling with diminished interest from loan buyers in recent months.

"We have and will continue to devote significant resources to expanding and diversifying our on- and off-balance-sheet funding strategies," Avant Chief Executive Al Goldstein said in a press release Monday.

Earlier this summer Avant announced that it was offering voluntary severance packages to all of its 760 employees. The company also said in early July that it was projecting a 40% decline in loan volume this year.

The privately held company specializes in installment loans to consumers with subprime credit scores.

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