Aven Financial announced October 30 that it closed its first asset-backed securities offering, a $304.2 million transaction backed by receivables from its home-equity credit-card product.
The AVNHT 2026-HE1 Trust transaction is backed by 6,786 fixed-rate, fixed-term receivables issued under the Aven Home Equity Card. According to the company, those receivables are secured by first- or second-lien mortgages on residential properties.
The announcement concerns financing backed by an existing pool of receivables. It is distinct from an announcement of $304.2 million in new loans to individual customers.
Aven said the senior Class A-1A and Class A-1B notes total approximately $234.5 million and received AAA ratings from S&P Global Ratings and AAA (sf) ratings from Morningstar DBRS. The company reported S&P ratings from AA to B for Classes B through F, while Morningstar rated Class B AA (high) (sf).
These ratings and their coverage are reported as described in Aven’s announcement. They do not represent a guarantee against losses or a recommendation to purchase the securities.
Barclays served as structuring lead manager and lead bookrunner. Goldman Sachs was co-lead manager and joint bookrunner. Funds affiliated with Davidson Kempner contributed assets and purchased the Class G and XS notes at closing, Aven said.
The offering was directed to qualified institutional buyers under Rule 144A and Regulation S. Aven described demand as oversubscribed but did not disclose an order-book total in the announcement.
Aven is a financial technology company rather than a bank. Its announcement identifies Coastal Community Bank as the provider of banking services and issuer of its Visa cards.
Sources: Aven Financial’s October 30 securities-offering announcement.