OnDeck CapitalInc. announced the pricingof $250 million of series 2016-1 fixed-rate asset-backed notes in a private asset-backedsecuritization transaction.
The notes will be issued by OnDeck Asset Securitization TrustII LLC in two classes: $211.5 million of class A notes and $38.5 million of classB notes. The notes were priced with an annual yield to expected maturity of 4.250%for the class A notes and 7.754% for the class B notes. The notes will have a finallegal maturity of May 2020.
The notes will be secured by and payable from a revolving poolof OnDeck Capital small-business loans, and OnDeck Capital will act as servicerof the loans securing the notes.
OnDeck Asset Securitization Trust will use the net proceeds fromthe offering mainly to purchase a revolving pool of small-business loans from OnDeckCapital. OnDeck Capital will use the purchase price it receives from the sale ofthose loans to repay any debt secured by those loans, including optionally prepayingin full all $175 million of the series 2014-1 notes, class A and class B, due 2018issued by another wholly owned subsidiary in a prior securitization transaction.Any remaining proceeds will be used for general corporate purposes.
The transaction is scheduled to close May 17.