MoneyMe inks $150m securitisation deal for SocietyOne

MoneyMe prices $150m securitisation deal for its personal lending brand SocietyOne to further facilitate profitable returns and stability in a challenging market.

Non-bank lender MoneyMe (ASX:MME) has announced its first securitisation deal for SocietyOne personal loan assets, since it acquired the business in early 2022.

The $150 million SocietyOne PL 2023-1 Trust term securitisation was priced on Tuesday, and is due to settle on Friday.

Highlights of the deal include:

$150m term securitisation of secured and unsecured personal loan assets from two SocietyOne warehouses
Lead arranger, National Australia Bank (NAB)
Lead managers, NAB and Westpac Institutional Bank
Public placement with major institutional investors
Moody’s rating, with the A1 and A2 senior tranches rated Aaa (sf)
Expected weighted average life of 1.43 years
No material change to the group’s overall cost of funds

Refinancing SocietyOne credit

The company’s had previously announced its plan to refinance loans from its two SocietyOne warehouses.

MME managing director and CEO Clayton Howes said the term transaction effectively solves the $146 million SocietyOne Funding Trust 1 warehouse prior to its expiry.

The second warehouse, the $190 million SocietyOne Funding Trust 2 is due to expire in September.

“It’s great to see our securitisation funding platform operate and deliver a third term transaction for the group to further facilitate profitable returns and stability in the current challenging economic environment,” Howes said.

“The successful deal demonstrates MoneyMe’s capital markets capabilities and strong funding position, underscored by a Moody’s Aaa (sf) rating for the senior tranches, reflecting the high quality of the underlying assets.

“As we continue to execute our strategy, we remain focused on profitable growth, maintaining and further enhancing the quality of our loan book, and leveraging the efficiency and accuracy of our AI-driven credit decisioning.”

Solid Q3 FY23 results

MME recently reported a solid Q3 FY23 as margins improved on reduced corporate debt. The company increased its gross revenue YoY by 75% to $61 million.

Contracted revenue was $375m, up 9% YoY, while MME’s ongoing focus on margin protection saw Net Interest Margins increase by 18% YoY to 13% in the quarter.

Building on the strong profit result of $9m in the first half, MME recorded >$7m in statutory net profit after tax (NPAT) for Q3 FY23.

Underpinning the solid performance was MME’s $1.18 billion loan book, which has seen a slight drop since the company announced its shift in focus from high growth to profit delivery at the beginning of the financial year but an increase of 2% YoY.

In late March MME launched a fully underwritten $37 million conditional equity placement to manage its corporate debt, including short-term facilities used for the SocietyOne acquisition.

This article was developed in collaboration with MoneyMe, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.