Octane Completes $400 Million Asset-Backed Securitization, Upsize from Initial $300 Million Target Issuance

Second AAA-Rating of 2023 Follows Period of Innovation and Continued Momentum

NEW YORK, June 1, 2023 /PRNewswire/ — Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $400 million securitization (“OCTL 2023-2”) collateralized by its fixed-rate installment powersports loans issued through its in-house lender, Roadrunner Financial®, Inc.

OCTL 2023-2 issued six classes of fixed-rate notes: Class A-1, Class A-2, Class B, Class C, Class D, and Class E, which Standard & Poor’s (S&P)* and Kroll Bond Rating Agency (KBRA)** rated as A-1+/K1+, AAA/AAA, AA+/AA+, A/A, BBB/BBB, and BB/BB respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The senior class of notes in Octane’s first asset-backed securitization of 2023, OCTL 2023-1, was also rated AAA by both S&P* and KBRA**.

Due to significant investor demand, Octane was able to secure an upsize of $400 million for the transaction from an initial target issuance of $300 million. The company continued to diversify its investor base by attracting several new investors through this issuance, while also maintaining the support of existing institutional investors. ATLAS SP Partners acted as lead manager and structuring agent, with J.P. Morgan and Truist Securities serving as joint bookrunners. This marks Octane’s eighth transaction to date.

“Our capital markets strategy continues to be a differentiator for Octane and our successful securitization program is a testament to the underlying strength of our business,” said Steven Fernald, Chief Financial Officer at Octane. “We’re grateful to our institutional investor partners for their support as we connect people with their passions and make buying better.”

“Octane’s end-to-end buying experience has fundamentally changed the way individuals can make lifestyle purchases, and we’re thrilled to have supported the company on its revolutionary securitization program,” said Thomas Pai, Head of Auto / Equipment Origination at ATLAS SP Partners. “We look forward to continuing to work with the team at Octane as it continues to innovate to capitalize on strong investor and consumer demand.”

This transaction follows a period of innovation for Octane. The company recently launched its newest digital soft pull tool, Prequal Flex, introduced advertising on its renowned Octane Media™ properties, which include Cycle World® and UTV Driver®, and rolled out a unique business-to-business (B2B) loyalty program, Octane Preferred, to its over 4,000 powersports dealer partners nationwide.

Octane has completed over $2.6 billion of asset-backed securitizations since launching the program in December 2019.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these 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.

*The full analysis for S&P’s ratings, including any updates, which you should review and understand, is available on spglobal.com and can be accessed here for OCTL 2023-1 and here for OCTL 2023-2.

**KBRA’s ratings are subject to all of the terms and conditions set forth in the related report and KBRA’s website, which you should review and understand, and can be accessed here for OCTL 2023-1 and here for OCTL 2023-2.

This is not an offer, solicitation of an offer, recommendation or advice to buy or sell any security, financial product or instrument.

About Octane:
Octane® is revolutionizing recreational purchases by delivering a seamless, end-to-end digital buying experience. We connect people with their passions by combining cutting-edge technology and innovative risk strategies to make lifestyle purchases–like powersports vehicles, RVs, and outdoor power equipment–fast, easy, and accessible.

Octane adds value throughout the customer journey: inspiring enthusiasts with the Octane Media™ editorial brands, including Cycle World® and UTV Driver®, instantly prequalifying consumers for financing online, routing customers to dealerships for an easy closing, and supporting customers throughout their loan with superior loan servicing.

Founded in 2014, we’re a remote-first company with over 30 OEM and 4,000 dealer partners. Visit www.octane.co.

Octane® and Roadrunner Financial® are registered service marks of Octane Lending, Inc.

Media Relations: Shannon O’Hara

Senior Director of Corporate Communications at Octane

[email protected]

Investor Relations: Kartik Kothari

SVP of Corporate Development and Investor Relations at Octane

[email protected] 

SOURCE Octane


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