SAN FRANCISCO, Dec. 1, 2017 /PRNewswire/ -- LendingClub (NYSE : LC ), America's largest online marketplace connecting borrowers and investors, today announced that it has closed a first-of-its-kind transaction in marketplace lending -- a whole loan transaction structured as a tradeable, pass-through security called a CLUB Certificate*. This first milestone transaction totaled $25 million with an institutional investor seeking a liquid vehicle with which to access the consumer credit asset class.
The CLUB Certificate transaction consisted of whole loans structured as a pass-through security. The instrument trades in the over-the-counter market with a CUSIP and is efficiently cleared through the Depository Trust and Clearing Company (DTCC).
"This milestone is a perfect example of LendingClub's innovation to meet the needs of our customers on both sides of the platform," said Scott Sanborn, CEO of LendingClub. "We're leveraging all of the capabilities we've developed to quickly react to the needs of both our borrowers and our diverse investor base."
"By pooling loans in a pass-through security, we've completed an unprecedented transaction in marketplace lending," added Patrick Dunne, LendingClub's Chief Capital Officer. "The transaction provided efficient access to our asset class in a product that met the investor needs in a single fixed income security that offers the potential for greater liquidity."
By continually innovating on products, LendingClub will further deepen and broaden investor access in 2018 and beyond through a variety of new products and structures.
*For the transaction, Consumer Loan Underlying Bond (CLUB) Certificate Issuer Trust I (the "Master Trust"), a Delaware statutory trust, established a series of the Master Trust (a "Series Trust"). LendingClub Corporation (the "Depositor") contributed certain loans to the Series Trust, and such Series Trust issued a certificate collectively representing 100% of the entire beneficial interest in such Series Trust (the "Certificates") to the Depositor. The Depositor then sold 95% of the Certificates to the institutional investor.
LendingClub was founded to transform the banking system to make credit more affordable and investing more rewarding. Today, LendingClub's online credit marketplace connects borrowers and investors to deliver more efficient and affordable access to credit. Through its technology platform, LendingClub is able to create cost efficiencies and passes those savings onto borrowers in the form of lower rates and to investors in the form of solid returns. LendingClub is based in San Francisco, California.
Safe Harbor Statement
Some of the statements above, including statements regarding investor demand, our ability to access the securitization markets in the future and our potential for future growth are "forward-looking statements." The words "anticipate," "believe," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "project," "will," "would" and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward statements include: the outcomes of pending governmental investigations and pending or threatened litigation, which are inherently uncertain; the impact of management changes and the ability to continue to retain key personnel; ability to achieve cost savings from recent restructurings; LendingClub's ability to continue to attract and retain new and existing retail and institutional investors; competition; overall economic conditions; conditions in the market for securitizations; demand for the types of loans facilitated by LendingClub; default rates and those factors set forth in the section titled "Risk Factors" in LendingClub's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K, each filed with the SEC. LendingClub may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. LendingClub does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Information in this press release is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Additional information about LendingClub is available in the prospectus for LendingClub's member payment dependent notes, which can be obtained on LendingClub's website at https://www.lendingclub.com/info/prospectus.action.