Eaglewood Upsizes Debut P2P Securitization

Eaglewood Capital Management has upsized a securitization of peer-to-peer (P2P) consumer loans, originally offered in October, by $47 million to a total of $100 million

The transaction, Eaglewood 2013-1 is backed by unsecured consumer loans originated through LendingClub Corp. and purchased by Eaglewood’s inaugural fund, Eaglewood Income Fund I, LP.

The deal has a senior/subordinated structure consisting of Class A Notes and $25,000,000 of Class B Certificates; it also features a revolving period during which collections will be reinvested in additional loans.

“We are happy to add scale to our initial securitization and feel that this follow-on securitization is extremely positive for our investors,” Jon Barlow, Eaglewood’s chief executive and chief investment officer, stated in a press release. “This transaction frees up capital on our warehouse line of credit and further mitigates interest-rate risk, while matching a greater portion of our assets and liabilities.”

Waterford Capital and Bonwick Capital Partners served as the structuring and placement agents for the transaction.

The portfolio of collateral, which Eaglewood assembled a proprietary loan selection algorithm and software, has weighted average borrower FICO score of over 700, weighted average borrower income in excess of $90,000, and a weighted average interest rate of 11-12%. All of the loans have term of 36 months.

So far, only two securitizations of P2P loans have been completed; in addition to Eaglewood’s deal, which is unrated and was privately placed, Social Finance, a non-bank lender that focuses on student debt consolidation/refinancing completed a $152 million securitization in December. That deal was rated single-A by DBRS.