BOSTON — February 11, 2026
Executive Summary
Lendbuzz has announced the completion of a $246 million asset-backed securitization transaction designated LBZZ 2026-1, marking the company’s first securitization of 2026 and its eleventh public transaction since launching its asset-backed securities program in the fourth quarter of 2021. The transaction is collateralized by a pool of auto loans secured by new and used automobiles, light-duty trucks, and vans. The issuance included five classes of notes rated by Kroll Bond Rating Agency. According to the company, the transaction attracted strong investor participation and further expands Lendbuzz’s diversified funding strategy, which has now surpassed $2.4 billion in publicly syndicated securitizations to date. The company stated that the additional capital capacity supports its ongoing vehicle financing operations and credit platform growth.
Announcement Overview
Lendbuzz confirmed the successful closing of LBZZ 2026-1, a $246 million securitization backed by a portfolio of auto loans originated through its financing platform. The collateral pool consists of loans made to obligors purchasing new and used vehicles, including automobiles, light-duty trucks, and vans. The securitization represents the company’s first transaction of the 2026 calendar year.
The notes issued in the transaction were structured into five tranches: Class A-1, Class A-2, Class B, Class C, and Class D. Each tranche received ratings from Kroll Bond Rating Agency, reflecting different levels of credit enhancement and seniority within the capital structure.
According to the company, J.P. Morgan Securities LLC served as lead bookrunner and structuring agent. Goldman Sachs & Co. LLC and RBC Capital Markets, LLC acted as joint bookrunners, while Mizuho, MUFG, and Regions Securities LLC served as co-managers.
The company indicated that investor participation reflected continued market engagement with its asset-backed securities program.
Key Announcement Details
- Announcement classification: Public asset-backed securitization closing
- Issuer: Lendbuzz, Inc.
- Transaction designation: LBZZ 2026-1
- Transaction sequence: Eleventh public securitization since ABS program launch
- Program inception: Fourth quarter of 2021
- Transaction year: 2026
- Transaction sequence within year: First securitization of 2026
- Total issuance size: $246,000,000
- Collateral asset class: Consumer auto loans
- Collateral security type: Secured installment auto loans
- Underlying collateral description: Loans secured by new and used automobiles, light-duty trucks, and vans
- Obligor profile: Retail vehicle purchasers financed through Lendbuzz platform
- Origination channel: Dealership-based vehicle financing
- Number of tranches issued: Five
- Classes issued: Class A-1, Class A-2, Class B, Class C, Class D
- Rating agency: Kroll Bond Rating Agency (KBRA)
- Short-term rating assigned: K1+
- Long-term ratings assigned: AAA, AA, A, BBB-
- Seniority structure: Multi-class capital stack with sequential credit enhancement
- Structuring agent: J.P. Morgan Securities LLC
- Lead bookrunner: J.P. Morgan Securities LLC
- Joint bookrunners: Goldman Sachs & Co. LLC, RBC Capital Markets, LLC
- Co-managers: Mizuho, MUFG, Regions Securities LLC
- Distribution channel: Publicly syndicated asset-backed securities market
- Investor base: Institutional structured credit investors
- Cumulative public securitization volume since 2021: More than $2.4 billion
- Funding strategy classification: Diversified capital markets funding program
- Headquarters: Boston, Massachusetts
- Company founding year: 2015
- ABS program milestone: Continued multi-year issuance continuity
Transaction Structure and Ratings
LBZZ 2026-1 issued five classes of asset-backed notes, structured to reflect varying levels of seniority and credit risk. The most senior tranches received the highest ratings, with lower tranches carrying correspondingly lower ratings to account for subordinated risk exposure.
The transaction received ratings from Kroll Bond Rating Agency as follows: K1+ for the short-term tranche, AAA, AA, A, and BBB- across the remaining classes. According to the company’s disclosure, these ratings were assigned based on the characteristics of the collateral pool and the structural protections embedded in the transaction.
The issuance reflects standard ABS structuring principles in which senior noteholders receive priority in principal and interest payments, supported by credit enhancement mechanisms typically including overcollateralization, excess spread, and subordination across tranches.
The securitization structure enables Lendbuzz to convert originated receivables into rated securities distributed to institutional investors, thereby recycling capital for continued loan origination.
Role of Transaction Participants
J.P. Morgan Securities LLC acted as lead bookrunner and structuring agent for LBZZ 2026-1. In this capacity, the firm coordinated transaction execution, investor marketing, structural design, and pricing processes.
Goldman Sachs & Co. LLC and RBC Capital Markets, LLC served as joint bookrunners, supporting distribution of the notes to institutional investors.
Mizuho, MUFG, and Regions Securities LLC participated as co-managers, contributing to investor outreach and allocation.
The involvement of multiple large financial institutions reflects established capital markets engagement in the Lendbuzz ABS program.
Program Milestone and Funding Strategy
This transaction represents Lendbuzz’s eleventh public securitization since initiating its ABS program in the fourth quarter of 2021. According to the company, cumulative publicly syndicated securitizations have exceeded $2.4 billion.
The company stated that the asset-backed securities program forms a core component of its diversified funding strategy. Through securitization, Lendbuzz is able to access capital markets funding tied directly to its loan portfolio performance.
The additional issuance capacity from LBZZ 2026-1 expands the company’s ability to originate and finance additional vehicle loans, supporting continued platform growth.
Leadership Statement
“We are excited to announce the successful completion of our first transaction of 2026,” said George Sclavos, Chief Financial Officer at Lendbuzz. “The deal had incredible interest from our diverse and expanding investor base which speaks highly to the level of confidence the investment community has in our ABS program.”
Asset-Backed Securitization Context
Asset-backed securitization allows specialty finance companies to bundle receivables and issue rated securities backed by those assets. In auto finance transactions, loan pools are typically diversified across borrower credit profiles, vehicle types, geographic regions, and loan terms.
By issuing rated securities, originators such as Lendbuzz can access institutional investor demand, including asset managers, insurance companies, pension funds, and other structured credit investors.
The securitization model provides liquidity to originators while transferring structured exposure to investors according to tranche risk profiles.
According to Lendbuzz, its ABS program continues to evolve as part of its long-term capital markets strategy.
Auto Loan Collateral Overview
The LBZZ 2026-1 transaction is collateralized by auto loans secured by new and used automobiles, light-duty trucks, and vans. The underlying loans represent financing extended through Lendbuzz’s vehicle lending platform.
The collateral pool includes consumer obligors purchasing vehicles through dealership channels. The securitization structure relies on borrower payments as the primary source of note repayment.
Auto loan securitizations typically include data on loan seasoning, weighted average interest rate, weighted average remaining term, borrower credit characteristics, and geographic distribution. While such pool-level details are not included in the announcement summary, the ratings assigned by KBRA reflect evaluation of these characteristics.
Capital Markets Continuity
Since launching its ABS program in 2021, Lendbuzz has returned to the capital markets multiple times annually. The eleventh public securitization underscores program continuity and institutional participation.
The company stated that it remains committed to growing its ABS platform as part of a diversified funding model.
The issuance of LBZZ 2026-1 at the beginning of 2026 establishes the first capital markets transaction for the company in the new calendar year.
About Lendbuzz
Founded in 2015 and headquartered in Boston, Massachusetts, Lendbuzz, Inc. is a financial technology company focused on vehicle financing and credit underwriting. The company uses artificial intelligence and machine learning models to assess creditworthiness and expand access to vehicle financing.
Lendbuzz’s platform processes large datasets using computational models designed to evaluate borrower profiles beyond traditional credit scoring methodologies. The company operates at the intersection of fintech and auto finance, providing lending solutions through dealership partnerships.
Since inception, Lendbuzz has built an asset-backed securitization program exceeding $2.4 billion in publicly syndicated transactions. The company has completed eleven public securitizations since the fourth quarter of 2021, reflecting sustained capital markets engagement.
Lendbuzz’s business model is structured to support vehicle purchases through financing extended to consumers while also enabling dealerships to increase sales through expanded financing options.
The company continues to develop its funding infrastructure, underwriting systems, and capital markets access to support long-term platform expansion.
Media Contact
Media & Press
MediaRelations@lendbuzz.com
Source Attribution
Source: Company announcement