KBRA Assigns Preliminary Ratings to OnDeck Asset Securitization Trust IV, LLC, Series 2024-1
06 Mayo 2024 - 3:56PM
Business Wire
KBRA assigns preliminary ratings to notes issued by OnDeck Asset
Securitization IV, LLC (“ODAS IV” or the “Issuer”). ODAS IV will
issue three classes of Series 2024-1 Notes (“ODAS IV 2024-1”)
totaling $299.491 million.
Founded in 2006, ODK Capital, LLC d/b/a/ On Deck Capital Inc. (
“OnDeck” or the “Company”) operates through an online lending
platform (www.ondeck.com) (the “OnDeck Platform”) to originate
small business loans in the U.S. and Australia through its
subsidiaries. The Company is a wholly owned subsidiary of Enova
International, Inc. (“Enova”), a non-prime consumer and small
business lender. Enova is a publicly traded fintech company under
the ticker “ENVA”. Since its founding, OnDeck has originated over
$18.3 billion to over 145,000 small businesses. OnDeck had 242
full-time employees as of February 2024.
ODAS IV 2024-1 represents OnDeck’s seventh small business ABS
securitization. The transaction will issue $299.491 million of
Series 2024-1 notes (the “Series 2024-1 Notes” or the “Notes”)
secured by a revolving pool of receivables consisting of Term Loans
and LOC loans that were underwritten under OnDeck’s credit
guidelines and originated through the OnDeck Platform to small
businesses in the US. ODAS IV 2024-1 features a revolving period
(the “Revolving Period”), which will end on the earlier of (i) the
close of business on July 17, 2027 or (ii) the date on which an
Amortization Event has occurred. The proceeds of the sale of the
Series 2024-1 Notes will be used to fund the Series 2024-1 reserve
account and to purchase fixed-rate small business loans that are
either the Term Loans or funded portions of the LOCs originated
through the OnDeck platform.
KBRA applied its Global General Rating Methodology for
Asset-Backed Securities as well as its Global Structured Finance
Counterparty Methodology and ESG Global Rating Methodology as part
of its analysis of the transaction’s underlying collateral pool and
the proposed capital structure. This transaction falls within
“Category 1 – Financial Assets” categorization noted within the
General Global Rating Methodology for Asset Backed Securities,
which typically relates to transactions that are backed by pools of
consumer or commercial financial obligations owed by diverse
obligors. KBRA considered its operational review of the Company, as
well as periodic update calls with the Company. Operative
agreements and legal opinions will be reviewed prior to
closing.
To access rating and relevant documents, click here.
Click here to view the report.
Methodologies
- ABS: General Global Rating Methodology for Asset Backed
Securities
- Structured Finance: Global Structured Finance Counterparty
Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity
analyses that consider what factors can affect these credit ratings
and how they could lead to an upgrade or a downgrade, and ESG
factors (where they are a key driver behind the change to the
credit rating or rating outlook) can be found in the full rating
report referenced above.
A description of all substantially material sources that were
used to prepare the credit rating and information on the
methodology(ies) (inclusive of any material models and sensitivity
analyses of the relevant key rating assumptions, as applicable)
used in determining the credit rating is available in the
Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be
located here.
Further disclosures relating to this rating action are available
in the Information Disclosure Form(s) referenced above. Additional
information regarding KBRA policies, methodologies, rating scales
and disclosures are available at www.kbra.com.
About KBRA
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit
rating agency registered with the U.S. Securities and Exchange
Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is
registered as a CRA with the European Securities and Markets
Authority. Kroll Bond Rating Agency UK Limited is registered as a
CRA with the UK Financial Conduct Authority. In addition, KBRA is
designated as a designated rating organization by the Ontario
Securities Commission for issuers of asset-backed securities to
file a short form prospectus or shelf prospectus. KBRA is also
recognized by the National Association of Insurance Commissioners
as a Credit Rating Provider.
Doc ID: 1004219
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506129134/en/
Analytical
Maxim Berger, Director (Lead Analyst) +1 646-731-1260
maxim.berger@kbra.com
Vicky Xiao, Analyst +1 646-731-1422 vicky.xiao@kbra.com
Edward Napoli, Director +1 646-731-1284
edward.napoli@kbra.com
Melvin Zhou, Managing Director (Rating Committee Chair) +1
646-731-2412 melvin.zhou@kbra.com
Business Development
Arielle Smelkinson, Senior Director +1 646-731-2369
arielle.smelkinson@kbra.com