Achieve, the digital personal finance company, announces the Oct. 27close of an offering of $157.52 million in rated notes backed by Consolidation Plus loans.
The securitization, ACHV ABS Trust 2023-4CP, includes five classes of rated notes and is backed by 14,141 unsecured consumer personal loans. It is the 21st securitization from Freedom Consumer Credit Fund, LLC (FCCF), an investment fund managed by Freedom Financial Asset Management, LLC (FFAM), an Achieve company. It is the eighth personal loan securitization from FCCF and FFAM to receive a AAA rating from DBRS Morningstar and the 10th to receive a AAA rating from Kroll Bond Rating Agency (KBRA).
Consolidation Plus loans are offered exclusively to members of Achieve’s debt resolution program and those of certain other legal services providers who have been enrolled for at least six months and have made timely payments into their dedicated accounts during that time.
“Consolidation Plus loans help accelerate the debt resolution process for consumers who are struggling with debt, but have demonstrated a commitment and ability to resolve their debt,” said Achieve Co-Founder and Co-CEO Andrew Housser. “This securitization supports Achieve’s mission of helping everyday people get on the path to a better financial future.”
Consolidation Plus loans are fully amortizing, unsecured consumer loans with original balances ranging from $1,000-$75,000, original terms of one to six years, and a fixed interest rate of 23.90% and 26.90%. Underwriting for the Consolidation Plus loan program is based on proprietary algorithms that evaluate behavioral, transactional, employment and income data, as well as a manual review of borrowers’ creditworthiness. The loans are originated by bank partners on the Achieve Personal Loans platform.
“This securitization was five times’ oversubscribed, reflecting the strong investor demand for Achieve’s differentiated loan assets and our strong track record in the market,” said Achieve Chief Financial Officer Ralph L. Leung.
The Class A, Class B, Class C, Class D and Class E fixed-rate notes were rated AAA (sf), AA (sf), A (sf), BBB (sf) and BB (sf), respectively, by KBRA. The Class A, Class B and Class C fixed-rate notes were rated AAA (sf), AA (sf) and A (sf), respectively, by DBRS Morningstar. The Class D and Class E notes were not rated by DBRS. The transaction structure features overcollateralization, subordination, a reserve fund and excess spread.
Truist Securities served as Structuring Agent, Initial Purchaser and Joint Bookrunner. ATLAS SP Partners and Jefferies each served as Rated Notes Initial Purchaser and Joint Bookrunner and CRB Securities served as Rated Notes Initial Purchaser. Since 2018, FCCF has sponsored 18 personal loan securitizations and three home equity line of credit securitizations. Cumulative issuances across all FCCF-sponsored securitizations total over $5.3 billion and total loan originations through the Achieve Personal Loans platform and Achieve Home Loans is approximately $11 billion.
This press release is for informational purposes only and is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (“Securities Act”), or the securities laws of any jurisdiction. The notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act or outside the United States in compliance with Regulation S under the Securities Act.
Achieve, THE digital personal finance company, helps everyday people get on, and stay on, the path to a better financial future. Achieve pairs proprietary data and analytics with personalized support to offer personal loans, home equity loansand debt resolution, along with financial tips and education and a free mobile app, Achieve MoLO (Money Left Over).Achieve has 3,000 dedicated teammates across the country with hubs in Arizona, California, Florida and Texas. Achieve is frequently recognized as a Best Place to Work.
Achieve refers to the global organization and may denote one or more affiliates of Achieve Company, including Achieve.com (NMLS ID #138464); Achieve Home Loans, Equal Housing Lender (NMLS ID #1810501); Achieve Personal Loans (NMLS ID #227977); Achieve Resolution (NMLS ID # 1248929) and Freedom Financial Asset Management (CRD #170229).
Vice President, Corporate Communications
Director, Corporate Communications