Achieve announces close of $200.6 million, AAA-rated personal loan securitization

Deal backed by Achieve Personal Loans brings total securitization volume backed by Achieve assets to over $5.5 billion

SAN MATEO, Calif., March 20, 2024 /PRNewswire/ -- Achieve, the leader in digital personal finance, announces the March 18 close of an offering of $200.63 million in rated notes backed by Achieve Personal Loans.

The securitization, ACHV ABS Trust 2024-1PL, includes four classes of rated notes and is backed by 10,757 unsecured consumer personal loans. It is the 22nd 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 ninth personal loan securitization from FCCF and FFAM to receive a AAA rating from DBRS Morningstar and the 11th to receive a AAA rating from Kroll Bond Rating Agency (KBRA).

"We're pleased the credit rating agencies noted that the underlying Achieve Personal Loans in this transaction have some of the strongest credit characteristics ever featured in an FCCF-sponsored securitization," said Achieve Co-Founder and Co-CEO Andrew Housser. "This reflects the ongoing efforts that Achieve and its bank partners have taken to be responsive to both the evolving landscape in consumer lending and strong investor demand for differentiated loan assets."

Achieve Personal Loans help individuals responsibly manage high-interest debt by consolidating revolving accounts into easy to manage, more consumer-friendly installment loans. The fully amortizing, unsecured consumer loans can have original balances ranging from $5,000-$50,000, two-to-five-year terms and a fixed interest rate ranging from 7.99% to 26.99%. Underwriting for Achieve Personal Loans is based on proprietary algorithms that evaluate behavioral, transactional, employment and income data, as well as a manual review of borrowers' creditworthiness and willingness to repay. The loans are originated by bank partners on the Achieve Personal Loans platform.

The Class A, Class B, Class C and Class D fixed-rate notes were rated AAA (sf), AA- (sf), A (sf), and BBB- (sf), respectively, by KBRA. The Class A, Class B and Class C fixed-rate notes were rated AAA (sf), AA (low) (sf) and A (low) (sf), respectively, by DBRS Morningstar. The Class D notes were not rated by DBRS. The transaction structure features overcollateralization, subordination, a reserve fund and excess spread.

"This securitization was more than four times' oversubscribed and was ultimately able to price tighter than recent consumer loan ABS issuances," said Achieve Chief Financial Officer Ralph L. Leung. "We believe this is a testament to our strong track record and a promising sign for robust capital markets activity in 2024."

ATLAS SP Partners served as Structuring Agent, Initial Purchaser and Joint Bookrunner. Morgan Stanley served as Initial Purchaser and Joint Bookrunner. Barclays served as Rated Notes Initial Purchaser and Joint Bookrunner and CRB Securities served as Rated Notes Initial Purchaser. Since 2018, FCCF has sponsored 19 personal loan securitizations and three home equity line of credit securitizations. Cumulative issuances across all FCCF-sponsored securitizations total over $5.5 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.

About Achieve

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 loans and debt resolution, along with financial tips and education and a free mobile app, Achieve MoLO (Money Left Over). Achieve has 2,500 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).

Contacts

Erica Bigley
Vice President, Corporate Communications
[email protected]
415-710-9006

Austin Kilgore
Director, Corporate Communications
[email protected]
214-908-5097

SOURCE Achieve