Enova International subsidiary announces $500 million asset-backed notes offering

Enova International's subsidiary, OnDeck Asset Securitization IV, LLC, plans to issue $500,026,000 in new asset-backed notes, according to a press release and SEC filing. The Chicago-based company, valued at $4.33 billion, has seen a 24% revenue increase over the past year. These notes come in four classes (A-D), each with varying interest rates and sizes.

The final payment date across all classes is set for October 18, 2032. Upon issuance, these notes are expected to receive ratings from Kroll Bond Rating Agency, LLC. The closing for this transaction is expected on September 25, 2026, contingent on certain conditions. Collateral for these notes will be provided by a revolving pool of small business loans managed by OnDeck Capital, LLC, another subsidiary of Enova International.

The proceeds from this offering will be utilized to purchase small business loans from OnDeck and to establish a reserve account. OnDeck will serve as the loan servicer, while the issuer, OnDeck Asset Securitization IV, LLC, will be the sole note obligor. These notes are exclusively available to qualified institutional buyers and foreign buyers under specific regulations, and they are not registered under any securities laws.

Enova has recently reported strong Q2 2026 earnings, surpassing market expectations, and has decided against acquiring Grasshopper Bancorp due to regulatory hurdles. Despite this setback, the company maintains a robust financial position with liquid assets surpassing short-term obligations.