Asset-Backed Securitization of $266 Million Finalized by Lendbuzz
Lendbuzz, an innovative AI-based fintech company, has recently closed a significant securitization worth $266 million, named LBZZ 2025-2. This transaction, which demonstrates strong credit performance and robust investor backing, is a testament to the confidence in Lendbuzz's credit model.
The securitization is collateralized by a pool of auto loans secured by new and used vehicles. The notes issued in five classes - Class A-1, A-2, B, C, and D - were rated by S&P Global Ratings and Kroll Bond Rating Agency, ranging from AAA/AA (senior notes) to BBB/NR (junior notes), reflecting solid credit quality and investment-grade ratings.
Credit enhancement was a key feature of this transaction, with overcollateralization, subordination of junior note classes, a funded cash reserve account, and excess spread providing a strong buffer for investors. Preliminary credit enhancement levels ranged from 26% for the senior Class A notes down to 4.5% for the Class D notes, supporting the robustness of the credit structure.
Investor confidence appears strong, as reflected by the involvement of leading bookrunners including Goldman Sachs, J.P. Morgan Securities, Mizuho, and RBC Capital Markets. Lendbuzz's Chief Financial Officer, George Sclavos, highlighted that the successful closing and growth of the program underscore investors' trust in Lendbuzz's credit model and credit performance.
MUFG and Regions Securities LLC acted as co-managers for LBZZ 2025-2, with Goldman Sachs & Co. LLC serving as lead bookrunner and structuring agent. J.P. Morgan Securities LLC, Mizuho, and RBC Capital Markets, LLC, served as joint bookrunners.
The success of LBZZ 2025-2 is a significant step forward for Lendbuzz, as it continues to expand its securitization program as part of its diverse funding strategy. To date, Lendbuzz has completed over $2.1 billion of publicly syndicated asset-backed securitizations. The additional capacity from the latest transaction will allow Lendbuzz to continue its mission of offering fair access to credit for underserved populations.
The transaction deepens Lendbuzz's access to diverse funding sources, further solidifying its position in the marketplace. With strong investor demand and positive feedback, Lendbuzz remains committed to growing its securitization program and continuing to deliver on its commitment to fair and accessible credit.
The securitization, collateralized by a pool of auto loans, was rated investment-grade by S&P Global Ratings and Kroll Bond Rating Agency. This successful $266 million transaction, led by Goldman Sachs, J.P. Morgan Securities, Mizuho, and RBC Capital Markets, demonstrates strong investor confidence in Lendbuzz's finance model.
