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AI FinTech Lendbuzz closes $219m asset-backed securitisation

By Delisha Fernandes

February 05, 2024

  • AI
  • Algorithms
  • Auto Lending

Lendbuzz, FinTech, Auto Finance, Credit Facility, Regions Bank, Shamrock Finance, Credit Score, Capital Markets, Loan Portfolio, Loan Origination, USALendbuzz, the AI-based FinTech company, has announced that it has closed a $219 million securitization collateralized by a pool of auto loans made to obligors and secured by new and used automobiles, light duty trucks, and vans.

“This was an incredibly successful transaction for Lendbuzz with a first time AAA rating, which is a testament to the Company’s focus on strong credit performance,” said George Sclavos, Chief Financial Officer at Lendbuzz. “We look forward to continuing to expand our asset-backed lender investor base, having added 12 first-time investors to the platform on this deal.”

Lendbuzz Securitization Trust 2024-1 (“LBZZ 2024-1”) issued four classes of notes: Class A-1, Class A-2, Class B, Class C. The LBZZ 2024-1 notes have been rated by S&P Global Ratings (S&P) and Kroll Bond Rating Agency (KBRA) as NR/K1+, AA-/AAA, A-/AA+ and NR/A-, respectively.

Goldman Sachs & Co. LLC acted as lead bookrunner and structuring agent, with J.P. Morgan Securities LLC and RBC Capital Markets, LLC as joint bookrunners; Regions Securities LLC acted as co-manager.

The AI-based FinTech company helps consumers obtain fair access to credit when purchasing a vehicle. Powered by alternative data and machine learning algorithms, Lendbuzz can assess the creditworthiness of consumers with limited credit history—a group underserved by traditional banks. Through the auto dealership partners, the company offers consumers attractive financing solutions while opening up opportunities for those dealerships to serve a more diversified customer base.

Lendbuzz remains committed to growing its asset-backed securitization program and expanding its asset-backed lender investor base, helping to provide additional liquidity for asset-backed lender investors and maintaining a diverse financing strategy for Lendbuzz. The additional capacity will allow Lendbuzz to continue on its mission to offer fair access to credit for underserved populations.

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