Freedom Financial Network Announces Closing of $233 Million Securitization Transaction with AAA Ratings from DBRS, Kroll |
SAN MATEO, Calif., January 26, 2022 /PRNewswire/ — Freedom Financial Network (FFN), a leading digital personal finance company, is pleased to announce the closing of a securitization transaction consisting of $232.89 million in rated notes backed by FreedomPlus personal loans.
The securitization, FREED ABS Trust 2022-1FP, was oversubscribed 3.5 times by investors and is Freedom’s first transaction to receive a AAA rating from DBRS Morningstar and the third to receive a AAA rating from Kroll Bond Rating Agency (KBRA ). The underlying FreedomPlus loans were issued by banking partners To cross River bank® and MetaBank®N / A on the Freedom Financial Asset Management (FFAM) platform. FreedomPlus Loans help consumers consolidate debt, reduce interest rates and convert revolving debt into cheaper, more consumer-friendly installment loans.
“Receiving AAA ratings from two rating agencies illustrates the strength of our strong credit enhancements and FFAM’s unique expertise in FreedomPlus personal loans,” said Joseph Toms, Chairman and Investment Director of the FFAM. “We look forward to continuing to help consumers achieve their personal financial goals, while offering attractive products to investors.”
The Fixed Rate Notes in Classes A, B, C and D have been rated AAA (sf), AA- (sf), A- (sf) and BBB- (sf) by KBRA. Class A, Class B and Class C Fixed Rate Notes have been rated AAA (fs), AA (fs) and A (low) (fs) by DBRS Morningstar. The Class D Notes have not been rated by DBRS.
“This transaction confirms that we are succeeding in our mission to help ordinary people overcome their debts and improve their financial prospects,” said André Housser, co-founder and co-CEO of FFN. “We are encouraged by strong consumer and investor demand for our unique products and approach.”
The collateral for the transaction was Credit Suisse, acting as structuring agent and joint bookrunner; Jefferies, co-editor of the book; and Truist Securities, associate bookrunner. The transaction structure includes overcollateralisation, subordination, reserve fund and excess margin, providing the following levels of credit enhancement:
Class A tickets: 58.75%
Class B tickets: 37.75%
Category C tickets: 28.25%
Category D tickets: 15%
The deal is the 11th securitization of the Freedom Consumer Credit Fund (FCCF) and its FREED ABS Trust, bringing the total issuance of all securitizations to more than $3.2 billion. Total loans issued through the FFAM platform now exceed $6.1 billionof which more than $4.5 billion in FreedomPlus personal loans. FFAM, an FFN company, is the managing member of the FCCF.
About Freedom Financial Network
Liberty Financial Network is a leading digital personal finance company built to help people. We do what traditional banks don’t: put people first. We believe in treating people like people, not like account numbers. We help everyday people borrow and stay on the path to a better financial future, with innovative technology and personalized support every step of the way. We help people control their spending, manage their debts (Debt Relief Freedom), save money, plan ahead, and make better financial decisions. By leveraging our proprietary data and analytics and artificial intelligence, we are able to offer solutions tailored to every stage of a consumer’s financial journey, including personal loans, home equity loans, l debt help and even financial tools and education (Bills.com).
For more information on career opportunities at FFN, visit: https://jobs.freedomfinancialnetwork.com/
About Cross River Bank
Cross River is a rapidly growing financial services organization that fuses the forward-thinking offerings of a technology company with the established expertise and traditional services of a bank. Since its inception in 2008, Cross River has developed strategic partnerships with leading technology companies, market lenders and payment providers, while emphasizing regulatory compliance and consumer protection. Cross River provides a highly secure, API-based banking platform and comprehensive product suite spanning lending, payments, risk management and banking-as-a-service (BaaS) offerings to deliver responsible financial solutions that empower businesses and consumers anytime, anywhere. To cross River bank is a New Jersey state-chartered FDIC-insured bank. For more information, please visit the Cross River website at www.crossriver.com or Twitter @crossriverbank.
About Meta Financial Group, Inc.®
Meta Financial Group, Inc.® (“Meta”) (Nasdaq: CASH) is a South Dakotafinancial holding company. At Meta, our mission is financial inclusion for all®. Via our subsidiary, MetaBank®, NA, we strive to remove barriers to financial access and promote economic mobility by working with third parties to provide responsible, safe, and high-quality financial products that contribute to the social and economic benefits of communities at the heart of the real economy. Meta works to increase financial availability, choice and opportunity for all. Additional information can be found by visiting www.metafinancialgroup.com.
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SOURCE Freedom Financial Network