Freedom Financial Network Closes Eighth Securitization, Sees Highest Rating to Date on Senior Notes

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First deal of 2021 places $186.5 million of rated notes

Freedom Financial Asset Management, part of Freedom Financial Network, offers personal loans to help consumers consolidate debt, lower rates and convert revolving debt to lower-cost installment loans.

Freedom Financial Asset Management, part of Freedom Financial Network, offers personal loans to help consumers consolidate debt, lower rates and convert revolving debt to lower-cost installment loans.

The robust investor demand validates the work we are doing to help everyday American consumers achieve financial flexibility and an overall better financial position.

Freedom Financial Network (FFN), the parent company of Freedom Financial Asset Management (FFAM), has closed its eighth securitization, placing $186.5 million of rated notes collateralized exclusively by ConsolidationPlus loans. FFN’s Consolidation Plus offers loans that accelerate debt settlement for consumers enrolled in qualifying debt programs.

This securitization saw Freedom’s highest rating to date on the senior notes, receiving an AA rating from Kroll and AA (low) rating from DBRS Morningstar, Inc. Underwriting this transaction were Credit Suisse, which served as the joint bookrunner and structuring agent; Truist Securities, which served as joint bookrunner; and Jefferies, which served as co-manager. In addition, this securitization is bringing in six new investors.

The Class A, Class B and Class C fixed-rate notes were rated AA (sf), A (sf) and BBB (sf) by Kroll. The Class A and Class B fixed-rate notes were rated AA (low) (sf) and A (low) (sf) by DBRS Morningstar, which did not rate the Class C notes.

Resiliency in unprecedented times
“The ability to close a securitization such as this one on the heels of 2020 is very encouraging,” says Joseph Toms, president and chief investment officer of Freedom Financial Asset Management (FFAM). “The robust investor demand validates the work we are doing to help everyday American consumers achieve financial flexibility and an overall better financial position.”

Issuance across all eight FFN transactions totals more than $2.4 billion. FFN has originated more than $2.2 billion ConsolidationPlus loans and more than $3.3 billion of FreedomPlus personal loans to date, for a total of more than $5.5 billion in total loans on its FFAM platform.

Moving forward
“Our overarching strategy is moving us towards becoming the first-choice provider of financial debt solutions for everyday Americans,” says Toms. “Our consumer-first approach is intent on delivering an innovative, holistic, multi-product set of solutions that will continue to grow across the consumer lending space in 2021. This will provide the investment community with a steady stream of quality originated assets with superior risk-adjusted returns.”

FFAM offers personal loans to help consumers consolidate their debt, lower interest rates and convert revolving debt into lower-cost, more consumer-friendly installment loans. Using a combination of process, technology and analytics, along with a focus on human interaction to hear directly from consumers about their financial needs, FFAM provides long-term risk-adjusted returns for investors in consumer lending.

Freedom Financial Network (http://www.freedomfinancialnetwork.com)
Freedom Financial Network provides innovative solutions that empower people to live healthier financial lives. For people struggling with debt, Freedom Debt Relief offers a custom program to significantly reduce and resolve what they owe more quickly than they could on their own. FreedomPlus tailors personal loans to each borrower with a level of customer service unmatched in the industry. For consumers enrolled in qualifying debt relief programs, ConsolidationPlus offers loans that accelerate debt settlements and enable them to be free of the debts sooner. Bills.com offers a resource site with simple tips, advice and tools to help consumers make smart financial decisions. Lendage, launched in 2019, provides customized mortgage products that help homeowners take control of maxed-out credit card debt.

Headquartered in San Mateo, California, FFN also operates an office in Tempe, Arizona. The company employs more than 2,200, and has been voted one of the best places to work in both the San Francisco Bay Area and Phoenix area for several years.

Contact: Michael Micheletti, mmicheletti@freedomfinancialnetwork.com, 415-359-6985

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