Purchasing Power, a subsidiary of PROG Holdings Inc., has successfully closed a $225 million asset-backed securities (ABS) transaction, marking a significant financing milestone for the organization.
The issuance consists of notes backed by a diversified pool of consumer receivables generated through Purchasing Power’s payroll purchase platform. The company’s voluntary employee benefit program allows workers to purchase products and services through automatic payroll deductions, providing an alternative financing option for everyday goods.
The new ABS transaction achieved a weighted average coupon rate reduction of more than 180 basis points compared with the company’s 2024 securitization, signaling strong investor confidence in the platform’s underlying credit performance and funding model.
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According to Lee Wright, President of Purchasing Power, the securitization demonstrates the strength and stability of the company’s payroll-deduction purchasing model. Wright noted that strong demand from institutional investors highlights the quality of the receivables backing the offering and supports the company’s broader funding strategy following its recent acquisition.
The transaction, named Purchasing Power Funding 2026-A, was structured as a multi-tranche offering and received strong ratings from Kroll Bond Rating Agency (KBRA). The Class A notes received a AAA rating, while the remaining tranches were rated AA, A, BBB, and BB-, respectively. These ratings reflect the credit quality of the underlying receivables and the structural protections built into the securitization.
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Proceeds from the issuance will be used to repay existing financing facilities and support new originations across the Purchasing Power platform, enabling the company to continue expanding its payroll-deduction purchasing solutions.
Barclays Capital Inc. served as the structuring agent and initial purchaser for the transaction, while Wilmington Trust National Association acted as trustee and collateral administrator.
The securitization represents the first time a subsidiary of PROG Holdings has accessed the ABS market, underscoring the strategic importance of Purchasing Power within the company’s portfolio following its acquisition earlier in 2026.
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