Pagaya Announces ~$800 Million ABS, its 8th Deal in 2023 with $3.9 Billion Raised This Year
July 20 2023 - 8:30AM
Business Wire
- First PAID transaction to achieve an AA-rating
- Over $17 billion in ABS funding raised to date
- Pagaya is the #1 issuer of personal loan ABS transactions in
the U.S.
Pagaya Technologies LTD. (NASDAQ: PGY) ("Pagaya" or “the
Company”), a global technology company delivering artificial
intelligence infrastructure for the financial ecosystem, today
announced the closing of PAID 2023-5 with ~$800 million of capital
raised, upsized from $600 million, its 40th asset-backed
securitization (ABS) to date and its 8th deal in 2023. With
Pagaya’s fully pre-funded model, capital is raised before loans are
originated by Pagaya’s partners, allowing financial institutions to
approve more loans without using their own balance sheets.
In this AA-rated transaction, qualified institutional buyers
purchased $792 million of asset-backed notes, consisting of
unsecured consumer loan assets. This capital raise solidifies
Pagaya’s position as the number one issuer of personal loan ABS
transactions in the U.S. and is a reflection of strong investor
interest in consumer credit. Pagaya has issued over $17 billion in
ABS transactions since 2018, funding over $17 billion in new loan
originations by U.S. consumer lenders, all originated with the help
of Pagaya’s AI-powered credit analysis.
“This transaction continues our benchmark programmatic issuance
activity and shows how our unique funding model, AI capabilities
and relationships across our partners and investors provide ample
size for thoughtful investment in consumer credit with lower cost
of capital,” said Paul Limanni, Pagaya’s Chief Capital Officer. “As
the first PAID transaction to achieve an AA-rating, this
securitization represents Pagaya’s ability to execute seamlessly,
showcases our strength in the ABS market, and is a testament to our
AI-driven business and expertise.”
This latest securitization showcases how Pagaya’s AI network is
uniquely positioned to source high-quality assets from a wide range
of partners and connect them with top institutional investors,
creating a win-win-win for all.
About Pagaya Technologies
Pagaya (NASDAQ: PGY) is a global technology company making
life-changing financial products and services available to more
people nationwide, as it reshapes the financial services ecosystem.
By using machine learning, a vast data network and a sophisticated
AI-driven approach, Pagaya provides comprehensive consumer credit
and residential real estate solutions for its partners, their
customers, and investors. Its proprietary API and capital solutions
integrate into its network of partners to deliver seamless user
experiences and greater access to the mainstream economy. Pagaya
has offices in New York and Tel Aviv. For more information, visit
pagaya.com.
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