SOURCE: Earnest

Earnest

May 16, 2016 14:30 ET

Earnest Completes $225 Million Securitization of Refinanced Student Loans

$225 Million Securitization Given Single-A Rating by DBRS and Kroll; Bookrunning Jointly Led by Goldman Sachs and Barclays

SAN FRANCISCO, CA--(Marketwired - May 16, 2016) - Earnest today announced the close of the company's second securitization for $225 million of notes. The offering was rated by DBRS and Kroll and achieved a Single-A rating for the senior notes.

Earnest is the only student loan refinancer to price consecutive securitizations in the first half of 2016 so far. The company's inaugural securitization closed for $112 million in February and was the first one successfully priced in the market in 2016. With the close of Earnest's second securitization, total securitized issuance now totals $337 million.

"Closing two successful securitizations in two quarters is a clear sign to the capital markets that we're committed to them as a regular issuer," said Louis Beryl, CEO and co-founder of Earnest. "This deal was oversubscribed, upsized, and traded on the tight end of market guidance with nearly a dozen total investors in the transaction -- a clear sign that our advanced technology, world-class underwriting, and lifetime servicing is resonating with the capital markets. As we look toward the rest of 2016 and beyond, we will continue to broaden our investor base and price additional securities."

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.