Student loan funder and refinancer CommonBond today announced the closing of its first student loan securitization.
Made up of graduate student loans, the package asset value is $100 million.
The securitization received a rating of “A (high)” from DBRS and “Baa2” from Moody’s. The rating from Moody’s is their first ever given to a first-time issuing marketplace lending platform.
CommonBond’s CEO sees this achievement as validation of the platform’s work to date and an important part of future success.
“This is a major milestone for CommonBond that reflects the quality of our underwriting, the strength of our team, and the scale of our platform,” said David Klein. “This securitization has meaningfully expanded our investor base among top institutions and money managers, and further positions us to meet and exceed our growth objectives over the coming months and years.”
The securitization marks the continuation of a good run for CommonBond. In February, they announced a partnership with Nelnet which saw the education planning and finance company make an equity investment in the company and agree to purchase at least $150 million of CommonBond loans.
CommonBond also expanded its offerings to include more than 700 graduate degree programs.
The company has funded and refinanced more than $200 million in graduate student loans. The average per-loan savings is more than $10,000.
When a borrower fully funds a degree with CommonBond, the company funds one year of education for a student in need through a partnership with Pencils of Promise.
Morgan Stanley served as both lead underwriter and the sole manager on the deal. White Pine Advisors served as an advisor.