Fair Square Financial completed the sale of $300 million of asset-backed securities (ABS) secured by Fair Square’s Ollo branded general purpose credit card receivables.
The transaction is the company’s first term ABS issuance since it began issuing Ollo credit cards in 2017.
Proceeds from the sale of the ABS will be used to pay down borrowings from Fair Square’s revolving credit facility and to fund the acquisition of additional receivables. The weighted average interest rate on the securities associated with the two-year revolving structure is 3.54%.
“The successful completion of our inaugural issuance of term asset-backed securities represents an important milestone in our mission to provide hard working middle class Americans the fairly priced, transparent credit card products they deserve” said Rob Habgood, CEO of Fair Square.
“We are very pleased with the investor reception for our issuance which included ratings by both Moody’s and Kroll. In addition to the ample equity support we have in place with Pine Brook and The Orogen Group, this demonstrated access to the capital markets positions us well for the continued execution of our growth plan.”
Fair Square Financial is a Wilmington, DE-based company focused on serving consumers with competitive credit card products under the Ollo brand.
