BOSTON–(BUSINESS WIRE)–Lendbuzz, the AI-based fintech company that’s disrupting the automotive lending industry, announced that it has closed a $163.15 million securitization collateralized by a pool of retail automobile contracts made to obligors and secured by new and used automobiles, light duty trucks, and vans. This transaction, Lendbuzz’s second securitization of 2023, and fourth since launching the program, continues a period of record-breaking success for the company.
LBZZ 2023-2 will issue four classes of notes: Class A-1, Class A-2, Class B, Class C which Moody’s Investors Service (Moody’s) and Kroll Bond Rating Agency (KBRA) rated as NR/K1+(sf), A3/AA-(sf), Baa3/BBB(sf) and NR/BB(sf).
J.P. Morgan acted as lead bookrunner and structuring agent, with Goldman Sachs as joint bookrunner.
“The ABS markets remain active and our platform continues to receive strong investor support,” said George Sclavos, Chief Financial Officer at Lendbuzz. “Lendbuzz is focused on a diverse liquidity strategy and the ABS markets will remain part of that strategy. We are thankful for the continued support of our investors and look forward to broadening those relationships.”
This transaction comes during a period of strong, consistent performance for Lendbuzz. It also provides a foundation for expansion of the company’s capacity and ability to grow the number of borrowers served by its unique AI-based auto finance platform.
Lendbuzz is an AI-based financial technology company that helps consumers obtain fair access to credit when purchasing a vehicle. Powered by alternative data and machine learning algorithms, Lendbuzz can assess the creditworthiness of consumers with limited credit history—a group underserved by traditional banks. Through our auto dealership partners, Lendbuzz offers consumers attractive financing solutions while opening up opportunities for those dealerships to serve a more diversified customer base. Lendbuzz is headquartered in Boston, Massachusetts and was founded in 2015.
Steve Francisco, CMO