SOURCE: Earnest

Earnest

November 02, 2016 12:00 ET

Earnest Completes $175M Securitization, Continues Growth With New Lending Facility and Loan Volume Milestone

The securitization comes alongside a $125 million credit facility and is Earnest's fourth deal of 2016, closing on the heels of over $1 billion in originated loans

SAN FRANCISCO, CA--(Marketwired - Nov 2, 2016) - Earnest today announced the close of the company's fourth securitization for $174.7 million of notes. The senior bonds were rated AA(low) by DBRS, and for the first time S&P joined to rate the senior bonds at 'A'. The company also announced a new $125 million credit facility from Deutsche Bank AG NY Branch. Both deals closed during a period of major growth for Earnest; the company recently completed $1 billion in refinanced student loans since launching the Student Loan Refinancing product in January 2015.

Earnest Student Loan Program 2016-D is the company's fourth securitization in 2016. The offering was oversubscribed, pointing to a consistent appetite for Earnest's notes and overall strength of the program. The deal was well perceived by the markets, and six new investors were added to the program.

The recent close brings the total amount securitized to over $700 million to date. The second largest issuer of asset-backed securities in the private student loan refinancing space in 2016, Earnest is also one of only two student loan refinancers to have completed four securitizations this year. Additionally, warehouse facilities to date now total $550 million and will enable the company to continue meeting the significant demand for its student loan refinancing product.

"These are three significant moments for Earnest. This highlights our traction in the markets, the strength of our securitization program, and our ability to be a trusted, lifelong financial partner for our clients," said Louis Beryl, CEO and co-founder of Earnest. "Our continued growth throughout the year is not only exciting for the business, but also for our clients who have now saved an estimated $300 million on their student loans."

This year has marked a significant period of growth for Earnest, bringing four successful securitizations, two new lending facilities, four new C-suite hires, and, most recently, the achievement of more than $1 billion in loan volume. Achieving this milestone in just three years points to strong demand for Earnest's unique product offering, better technology and unparalleled customer experience -- all of which help refinancing clients save over $20K on average across the life of their loans.

About Earnest
Earnest is a technology company using data science, smarter design, and exceptional service to rebuild financial services. Founded in 2013 on the belief that financially responsible people deserve better options and access to credit, Earnest's lending products are built for a new generation seeking to reach life's milestones. The company's mission is to democratize access to high-quality financial services.

Earnest is headquartered in San Francisco and backed by Maveron, Battery Ventures, Adams Street Partners, Andreessen Horowitz, Accomplice Ventures, Wildcat Venture Partners, First Round Capital, and others. For more information, please visit earnest.com or follow the team on Facebook, Twitter, and the Earnest Blog.