Enova's OnDeck Announces $261.4M Securitization

Enova International's indirect subsidiary, OnDeck Asset Securitization IV, LLC, announced a $261.4 million private placement of fixed-rate asset-backed notes on November 5, 2025. This Series 2025-2 transaction is collateralized by a revolving pool of small business loans originated or purchased by OnDeck.

• The ABS transaction totals $261,434,000 in Series 2025-2 Fixed Rate Asset-Backed Notes to be issued by OnDeck Asset Securitization IV, LLC, a wholly owned indirect subsidiary of Enova International.​

• The collateral supporting the notes consists of small business loans.​

• The offering is a private placement intended for qualified institutional buyers under Rule 144A and non-U.S. persons in compliance with Regulation S.​

• The proceeds from this securitization will be used by the issuer to purchase loans from OnDeck, with Enova intending to use its received funds for general corporate purposes.​

• The notes are not obligations of, nor guaranteed by, Enova International or OnDeck directly—the issuer (OnDeck Asset Securitization IV, LLC) is the sole obligor.​

• Kroll Bond Rating Agency is expected to rate the notes at issuance.​

• Classes carry interest rates ranging from approximately 5.08% to 8.77%, and the final payment date is set for 2032.​

OnDeck Prices $261M ABS at 4.84% for Senior Paper: Real Benchmarks for Your Funding Strategy

Here's what the deal structure tells us about current pricing and market access for alternative small business paper.

The Deal Size Matters for Market Capacity

The $261,434,000 transaction size provides specific data points for funding strategy and market benchmarking.

1. Pure Debt Financing: This is structured debt capital, not equity dilution. Enova is funding loan originations through the securitization markets without touching its equity base.

2. Relative Scale: For a company with approximately $3.0 billion in market capitalization, this transaction represents roughly 8.7% of market cap. That's material deployment of structured finance as a primary growth funding channel.

3. Direct Portfolio Deployment: The net proceeds are contractually designated to purchase additional small business loans from OnDeck and fund a reserve account. Capital raised flows directly into portfolio expansion.

4. Market Access Confirmed: Successfully placing this volume confirms the company maintains consistent access to institutional capital markets. This distinguishes originators with reliable ABS execution from those dependent on more volatile funding sources.

Fixed-Rate Tranche Pricing: Current Cost of Capital for Small Business Loans

The four-tranche structure provides precise, current pricing benchmarks for secured small business credit risk across the ratings spectrum.

1. Senior Debt Benchmark: The 4.84% fixed rate on Class A notes (anticipated AA (sf) rating) establishes the current efficient funding cost for high-quality, structured small business loan pools. This is the number to compare against your own senior debt costs.

2. First-Loss Pricing: The 374 basis point spread between senior Class A notes (4.84%) and subordinate Class D notes (8.58% fixed rate, anticipated BB (sf) rating) quantifies exactly what investors require to absorb first-loss risk in this asset class.

3. Mezzanine Layer Demand: Class C notes at 6.30% (anticipated BBB- (sf) rating) show continued institutional appetite for investment-grade mezzanine paper. There's liquidity below the highest rating tiers.

4. Term Financing: All tranches have a legal final payment date of November 17, 2032. This provides long-term, term-matched debt capital aligned with asset tenor, eliminating near-term refinancing risk for the issuer.

Collateral Structure: How the Deal Is Actually Built

The structure details reveal the operational and legal framework supporting institutional investment in high-volume commercial loan portfolios.

1. Revolving Pool Mechanics: The securitization uses a revolving pool of small business loans where receivables are added as others liquidate. This requires sophisticated cash flow management, typically executed via a master trust structure, providing efficiency and uniform collateral performance across multiple series.

2. Legal Isolation from Corporate Risk: The notes are obligations solely of the Issuer (OnDeck Asset Securitization IV, LLC). They are expressly not guaranteed by or obligations of Enova International or OnDeck. This bankruptcy remoteness protects investors from the sponsor's corporate credit risk and is required for sales treatment accounting.

3. Servicing as Credit Component: OnDeck retains the servicer role, handling customer service, payment processing, and collections. Since investors rely on ratings rather than conducting individual loan due diligence, servicer competence and track record are critical to deal performance and marketability.

4. Private Placement Execution: The offering is made solely to qualified institutional buyers (Rule 144A) and certain foreign persons (Regulation S). This private placement structure avoids public registration complexity and timeline, targeting a specialized institutional investor base with faster execution.

<sub>Sources:
- KBRA Rating Report - Series 2025-1
- SEC Form 8-K
- Stock Analysis - Enova Market Cap
- SEC Form 8-K filed November 5, 2025
- KBRA Ratings - OnDeck Transactions
- Enova International Investor Relations</sub>

1-Minute Video: How 1West Automated Their Biggest Bottleneck in Less Than a Week

1West integrated Cobalt Intelligence's SOS API using the three-step knockout waterfall:

1. Auto-decline on inactive status.

2. Auto-correct time in business using official filing dates.

3. Route by confidence score - only flag the 10% that need human review.

1West freed up massive bandwidth and reduced fraud. Idea Financial eliminated their bottleneck entirely.

Available for automated SOS verification across all 50 states with same-week implementation.

Schedule a FREE demo call

Headlines You Don’t Want to Miss

Local Private Lender Nabs $150 Million Credit Facility - Los Angeles Business Journal

Pasadena Private Lending Inc. closed a $150 million credit facility with KeyBank National Association, expanding its total capital base to over $350 million and strengthening its lending capacity for lower middle-market companies. This move reflects the rising demand for flexible private credit solutions among business owners underserved by traditional banks.

Appellate Court Upholds Colorado's Power to Block Predatory Out-of-State Bank Loans

The Tenth Circuit Court of Appeals upheld Colorado's authority to enforce its interest rate caps on out-of-state bank loans, aiming to stop predatory "rent-a-bank" schemes that enabled lenders to charge rates as high as 199% APR to Colorado residents. This landmark ruling allows Colorado to require both non-bank lenders and out-of-state banks to comply with local usury laws, setting a precedent for other states to follow.

Built Launches Draw Agent to Approve Construction Loan Draws in Minutes

Built Technologies, a fintech unicorn, has launched its AI-powered Draw Agent to automate and accelerate the process of construction loan draws in commercial real estate (CRE) lending. The Draw Agent reduces review times by up to 95%, processes billions in loan requests, and enhances risk management and policy compliance for lenders.