Investors lined up to buy five times more than the amount of bonds available in a securitization of loans originated on the Prosper Marketplace that BlackRock sold this week.
Citigroup, the lead underwriter, received roughly $1.5 billion in orders to fill the $344.85 million offering, according to pricing sheets that investors shared with American Banker. BlackRock will pay investors a 2.84% yield on the one-year tranche and a 5.27% yield on the 2.8-year bonds from the deal, which Credit Suisse co-managed with Citi.
Moody's Investors Service awarded part of the offering investment-grade ratings, which are crucial to attract a broader range of institutional investors.
At least one more bond issuance backed by marketplace loans is in the near-term pipeline. That deal, which Citi will also manage, will be introduced to investors by Blue Elephant Capital Management,
