Fair Square Financial has completed the sale of $300m of asset-backed securities (ABS) secured by Fair Square’s Ollo branded general purpose credit card receivables.
The transaction marks Fair Square’s first term ABS issuance since it commenced Ollo credit cards issuance three years ago.
The company stated that the proceeds from the sale will be used to reduce borrowings from Fair Square’s revolving credit facility. The proceeds will be also used to acquire additional receivables.
Fair Square CEO Rob Habgood said: “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”
“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 technology-driven credit card company. Ollo, the company’s credit card brand, is claimed to offer streamlined servicing to its card members through web and mobile applications.
The company claimed that it combines credit card expertise with advanced analytics and technology to gain a better understanding of consumers beyond their credit score.