Octane Lending, the fintech revolutionizing the buying experience for major recreational purchases, announced that it has closed a $125.76 million securitization.
The notes will be collateralized by a pool of retail installment loans issued through Octane’s in-house lender, Roadrunner Financial Inc., that are secured by new and used recreational vehicles (RVs), powerboats and pontoon hybrids.
This is Octane’s first transaction under its new RV/Marine shelf, denoted with the “RVM” ticker. Octane has completed 14 asset-backed securitizations since launching its program in December 2019, including OCTL 2024-1, OCTL 2024-2 and OCTL 2024-3 in 2024. In the company’s last six powersports ABS transactions, RV and marine loans comprised approximately 1.35% or less of the pool.
OCTL 2024-RVM1 consists of five classes of fixed-rate notes: Class A, Class B, Class C, Class D and Class E, which Standard & Poor’s (S&P) rated as AAA, AA, A, BBB, and BB respectively, in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended. ATLAS SP Securities acted as lead manager and structuring agent, with Truist Securities serving as joint bookrunner, and J.P. Morgan Securities and Mizuho serving as co-managers.
“We are excited to build on our successful ABS track record by issuing our first securitization wholly backed by RV- and marine-collateral, which was extremely well received by the market,” said Steven Fernald, president and chief financial officer at Octane. “Thanks to the strong interest from a large number of new investors as well as our existing, long-term investor partners, we are well positioned to continue to meaningfully grow our business in 2025 and beyond.”
Octane entered the RV market in 2022, doubled originations in 2023 and is on track once again to double its RV originations year-over-year in 2024. Octane first began financing pontoons in 2022 and entered the broader marine market this fall.
