Oxford Finance Closes Strategic Private Asset Backed Securitization with Sale of Residual Interests
Oxford Finance LLC (“Oxford”), a leading specialty finance firm that provides senior debt to a variety of businesses worldwide, today announced the closing of a private placement transaction involving the sale of approximately $400 million of loans from Oxford’s balance sheet. These loans were sold at par to a newly formed securitization entity, which simultaneously issued three tranches of rated asset backed securities, as well as subordinated Class R notes representing the right to receive the residual interests in the loan portfolio’s cash flows (collectively, the “Securities”). The transaction includes incremental commitments from investors to fund additional loan purchases and an accordion feature that could increase the total transaction size to $1 billion.
“This transaction represents an important step in our strategy to grow fee-generating assets under management, alongside our balance sheet, as Oxford continues to scale,” said Timothy Lex, Oxford’s President and Chief Executive Officer.
Kroll Bond Rating Agency rated the debt securities issued in the transaction. Barclays acted as sole structuring advisor and lead left placement agent, and MUFG Securities Americas Inc. acted as joint placement agent.
