SOURCE: Earnest

Earnest

August 09, 2016 12:00 ET

Earnest Completes Third Securitization of 2016; $527 Million Issued to Date

DBRS Rates $190 Million of Notes at AA (Low)

SAN FRANCISCO, CA--(Marketwired - Aug 9, 2016) - Earnest today announced the close of the company's third securitization for $190 million of notes. The offering was rated by DBRS and achieved an AA (low) rating for the senior notes; Goldman Sachs served as the structuring agent with Barclays joining to lead the distribution.

This is Earnest's third securitization this year -- closing an inaugural securitization of $112 million in February, the first successfully priced in the market in 2016 for an online lender, and a second in May for $225 million. This recent close marks a total securitized issuance of $527 million.

"We continue to see traction in the markets and an appetite for bonds backed by high quality assets. Issuing three deals in six months showcases our strong relationship with the capital markets," said Louis Beryl, CEO and co-founder of Earnest. "As with our second securitization, the deal was oversubscribed and traded on the tight end of market guidance with now over a dozen total investors in the transaction. Furthermore, we increased our ratings and have added five new investors to our platform. Earnest's continued growth and work with investors showcases our dedication to being a trusted, lifelong financial partner for our clients, and this latest securitization is one step in that journey."

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.