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Month: June 2018

Freedom Financial Network’s First Securitization

We achieved a big milestone today, closing Freedom Financial Network’s first ever loan securitization, which placed $256 million worth of investment-grade notes in an offering that was significantly over-subscribed.

This deal marks the first time that a new issuer in a non-bank lending securitization has received an A rating on its senior tranche from DBRS. Credit Suisse, who was the structuring agent, and SunTrust underwrote the transaction.

I am very thankful to the team at Credit Suisse and SunTrust for the excellent work bringing this to market. Our legal team at Sidley and rating agency DBRS were also terrific partners to work with. And finally, to everyone here at Freedom who worked incredibly hard (including many early mornings and late nights) and executed flawlessly to get this done on schedule, on budget and with terms that exceeded our goals – a huge thank you!

Back in March, Freedom Financial Asset Management (FFAM), a Freedom Financial Network platform, crossed the $2 billion threshold of loans originated, and the securitization market will be a key to continuing our growth trajectory.

This is Not Growth for Growth’s Sake

While we love celebrating milestones like this, our focus from the beginning of Freedom has never been to grow for the sake of growing. Growth itself is not our goal; growth should be a side effect of building something great.

We have always focused on investing in our people, processes, data, and technology to build a company that delivers significant value to our customers, investors, employees, and communities. The success of this securitization is a validation of that long-term approach to building value.

What’s Next

We focus on providing unique loan products to help underserved customers consolidate their debt, lower their interest rates, and build financial wellness. This will not change. That said, we also want to make sure that we produce consistent, predictable returns for our investors. We need both sides of this equation to build a strong business. And this transaction will help make that happen.