Bay Area student loan refinancing platform Earnest has made a pair of announcements which bolster its financial standing in a competitive space.
The platform opened a new $150 million warehouse facility with Goldman Sachs, bringing its total warehouse facilities to date to $350 million. Funds are earmarked for further refinancings.
Earnest also completed its first securitization, a $112 million student loan refinancing which was over subscribed. Led by Credit Suisse, the loans are A-rated by DBRS.
“In an uncertain debt market, having an oversubscribed inaugural securitization speaks to the extremely high quality of Earnest clients and our evaluation process,” Earnest CEO and co-founder Louis Beryl said. “We are using technology to deliver a truly unique and integrated product, which is now being recognized by the capital markets.”
That technology was one factor which attracted investors.
“Earnest’s inaugural securitization demonstrates the strength of Earnest’s data-driven model and the quality of its borrowers,” said Anup Agarwal, Head of Structured Product at WAMCO and Chief Investment Officer at Western Asset Mortgage Capital, Corp.