The banking platform Oportun obtains a loan of 150 million dollars

[ad_1]

Mission-driven fintech and digital banking platform Oportun Financial Corporation has completed a $150 million senior secured term loan from funds managed or sub-advised by Neuberger Berman Finance specialty.

“The capital provided by this loan will support the continued investment and growth of our business that we anticipate, even within the stricter credit underwriting criteria that we have adopted in the current environment,” said the director. financier of Opportun. Jonathan Coblentz said on a Thursday (September 15) Press release.

See also: Sezzle expands its long-term financing product with Genesis, Oportun

“The loan proceeds will provide the capital and liquidity needed to support our future securitization and warehouse line financings, while this transaction further validates the investment community’s confidence in the business model and financial strength. of Oportun,” added Coblentz.

Jefferies LLC acted as financial advisor and sole arranger of the transaction and Orrick, Herrington & Sutcliffe LLP acted as legal advisor to Oportun. The secured term loan is due in 2026.

“By extending this credit facility to Oportun, Neuberger Berman is predominantly investing in a leading company focused on responsible service to communities that have historically been neglected and insufficiently supported by traditional financial institutions,” said the CEO of Neuberger Berman. Zhengyuan Lu said in the press release.

Read more: Majority raises $37.5 million to better meet banking needs of American migrants

Based in Silicon Valley and co-founded in 2005 by Gabriel Manjarrezwho served as CEO until 2008, and James Gutierrezwho served as CEO until 2012, Oportun was originally founded as Progreso Financiero and was among the leading providers of unsecured loans to Latinos in the United States. The company’s mission is to provide inclusive and affordable financial services and currently helps “more than 1.8 million working members meet their daily borrowing, saving, banking and investing needs” , according to the press release.

Listed on Nasdaq in 2019 under the symbol OPRT, Oportun is a digital banking platform powered by artificial intelligence (AI). Since its inception, it has extended more than $14 billion in credit and saved its members more than $2.3 billion in interest and fees, the company said.

New PYMNTS Study: How Consumers Use Digital Banks

A PYMNTS survey of 2,124 US consumers shows that while two-thirds of consumers have used FinTechs for some aspect of banking, only 9.3% call them their primary bank.

We are always looking for partnership opportunities with innovators and disruptors.

Learn more

https://www.pymnts.com/subscription-commerce/2022/platforms-drive-adoption-subscription-commerce-mea/partial/

[ad_2]
Source link

Michael C. Sumner