LendingClub Corporation, the parent company of LendingClub Bank, America’s leading digital marketplace bank, closed on a $100 million LendingClub Structured Loan Certificates (SLCLC) program transaction where it secured an investment grade rating from Fitch Ratings, Inc. (Fitch) on the series notes and gained participation from a top global insurance company.
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“Securing an investment grade rating from Fitch for our first rated SLCLC series speaks to our credit stewardship and commitment to strong returns for our loan investors,” said Scott Sanborn, LendingClub CEO. “The SLCLC program has generated growing interest from investors since its inception and rating our transaction only enhances that appeal for both new and existing investors, which should ultimately translate to higher loan sales pricing and increased revenue.”
“We’re excited to be able to extend the advantages of the SLCLC program to investors who require a rated product, including insurance companies who collectively hold over $8.5 trillion in assets,” said Clarke Roberts, SVP and GM, Marketplace at LendingClub. “Adding rated transactions further broadens our investor distribution channels, diversifies our funding profile, and reinforces our reputation as a partner of choice in this asset class.”
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The rated transaction is an expansion of LendingClub’s innovative SLCLC program, which has grown rapidly since its April 2023 launch, crossing $4 billion in total originations as of December 31, 2024. Private credit funds have sought out the SLCLC program due to its built-in financing, seamless investment experience, and compelling return profile. LendingClub worked with Fitch on an investment grade rating for the series notes to open the program to investors who require a rated product. This transaction will trade in the over-the-counter market with a CUSIP and is cleared through the DTCC (Depository Trust and Clearing Company).
Throughout its 18-year history, LendingClub has offered a range of industry-first, unique product structures to expand investor access to consumer credit, broaden distribution, and improve liquidity for investors. The company has deep expertise with rated transactions, having issued nearly $4 billion in rated transactions since 2016 through its CLUB and CLRT programs.
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Source: PR Newswire
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