December 18, 2020

Classic Funding, the data and technology platform revolutionizing access to credit, announced today the closing of its tenth (10th) securitization transaction since 2017 and its fourth (4th) securitization transaction in 2020.  Since 2017, Classic Funding has issued $2.14 billion of securitized notes, in aggregate, including: $1.15 billion of unrated, warehouse facility notes; $882 million of KBRA-rated, term ABS notes; and $108 million of unrated, term ABS notes.

Classic Funding’s most recent transaction (the “Classic Funding SPE Trust Series 2020-VFN1”) involved the issuance of senior and subordinate notes totaling $350 million.  The notes revolve until December 2022 and are expandable to up to $700 million. There were six (6) lenders that participated in this transaction.

Classic Funding intends to use this warehouse facility to fund the continued growth of its consumer installment loan origination platform. Guggenheim Securities, the investment banking and capital markets division of Guggenheim Partners, arranged the transaction and served as sole structuring agent and sole bookrunner. CBIZ MHM is the Administrative Agent, and U.S. Bank is the Note Agent and Paying Agent. The transaction was structured as an amendment and an extension of Classic Funding’s Series 2018-1 warehouse facility, which was also arranged by Guggenheim Securities.

“The successful closing of our fourth securitization of 2020 confirms the investment community’s trust in the Classic Funding platform’s ability to continue to originate high-performing assets in trying and rapidly-changing economic conditions,” stated Charlie Maines, Director of Classic Funding’s Capital Markets Group, who joined the Classic Funding leadership team earlier this year.

Classic Funding’s CEO Tom Burnside said, “the public and private capital markets have proven to be — and continue to be — an essential part of our diversified funding strategy.  Classic Funding’s ability to both grow and remain profitable in 2020 validates our robust risk and business models while allowing us to continue to do good while doing well.”

In August 2020, Classic Funding and eBay announced their partnership, which enables Classic Funding to provide eBay sellers with the capital they need to grow their respective online businesses. In November 2020, Classic Funding closed its first revolving and largest ever, KBRA-rated consumer loan ABS issuance and earned an impressive, consecutive placement on the Deloitte Technology Fast 500 list. Earlier in the year, Classic Funding was recognized as the 7th fastest growing company in metro Atlanta and was placed on Inc’s 5000’s fastest growing companies in America for the second year in a row.

About Classic Funding

Classic Funding is a data and technology platform that enables origination of unsecured personal loans both direct to consumers online and at the point of sale for financial institutions and for its own balance sheet. The company uses its data algorithms and technology to create better lending and borrowing experiences by finding more reasons to say “yes” — democratizing credit across the credit spectrum by unlocking access to affordable loans. Its Classic Funding Merchant Solutions platform provides ecommerce platforms, merchants and other service providers a fully integrated, one-stop retail financing solution to accelerate commerce by converting more customers at the point of sale.

For the past two years, Classic Funding was named one of Inc. 5000’s list of fastest-growing private companies, ranking 17th in 2019.  Classic Funding ranked 9th on Deloitte’s 2019 Technology Fast 500 and in 2020 was honored as one of the top 40 fastest growing companies in Atlanta by ACG. Classic Funding is a privately held company headquartered in Metro Atlanta, with offices in New York.