"Closing our first securitization is a watershed moment for Backflip and a strong endorsement of our strategy, Richard Porteous, the company's chief investment officer, said in a statement. Institutional investors recognized the value of our vertically integrated approach. By controlling the entire lifecycle of the loan from origination to our in-house servicing we provide a level of data integrity and asset management capability that is differentiated in the sector."
"The company said the transaction will lower its cost of capital and diversify its funding sources as it looks to scale lending to residential real estate investors nationwide. The deal was unrated and drew interest from a range of institutional buyers. The securitization included A1, A2 and M classes of notes, all of which were sold. It also features a two-year revolving period that allows repayments to be reinvested, providing an estimated $300 million in additional capacity."
Backflip closed its first securitization, securing institutional investor demand for its vertically integrated model. Controlling the entire loan lifecycle from origination to in-house servicing supports improved data integrity and differentiated asset management capabilities. The transaction will lower cost of capital and diversify funding sources to scale lending to residential real estate investors nationwide. The unrated deal sold A1, A2 and M classes of notes and attracted a range of institutional buyers. A two-year revolving period allows repayments to be reinvested, providing an estimated $300 million in additional capacity. Performance Trust served as structuring agent, bookrunner and initial purchaser, with legal and due diligence advisors engaged.
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