A pool of small business loans, which On Deck Capital originates through its online platform and its subsidiaries, will secure $500 million in asset-backed securities (ABS).
On Deck Capital and ODK Capital, a wholly owned subsidiary of Enova International, which specializes in non-prime consumer and small business lender, are sponsoring the deal, according to Kroll Bond Ratig Agency.
Asset Securitization Report's deal database finds that the deal is expected to close on Sept. 25, 2026.
The deal, OnDeck Asset Securitization IV, 2026-1, or ODAS IV 2026-1, is structured with a revolving period that will end on either Sept. 30, 2028 or the date of an amortization event. An amortization event would occur if the deal's three-month weighted average (WA) loan yield is less than 37.50%; its WA three-month spread is less than 9.00%; or its three-month average delinquency ratio is greater than 16.00%.
On Deck Capital provides term loans and lines of credit, KBRA said. Proceeds from the sale will be used to fund the transaction's reserve account and purchase fixed-rate, small business loans. The loans will be either the term loan product or portions of the lines of credit originated through the OnDeck platform, KBRA said.
ODK Capital is the deal's servicer, while Vervent is backup servicer on the deal, KBRA said.
ODAS IV 2026-1 will issue expandable term notes, so that at any time during the revolving period the issuer can periodically upsize the notes to a maximum of $626 million if eligibility conditions are met.
Aside from the amortization trigger, other structural features include subordination and an overcollateralization level of 5.00% of the pool balance, and will maintain that level throughout the revolving period.
Around Sept. 25, the deal will have a non-declining reserve account funded to an amount equal to 0.75% of the initial note balance.
The deal will issue four tranches of class A, B, C and D notes, all of which have a legal final maturity of Oct. 18, 2032. Classes A, B, C and D have initial credit enhancement levels of 56.01%, 34.23%, 16.23% and 5.71%, respectively.
KBRA assigns ratings of AA, A-, BBB- and BB, to classes A, B, C and D, respectively.
