Jul. 13 at 7:56 PM
Robinhood Markets is sounding out investor demand for its first asset-backed securities (ABS) deal backed by receivables from its proprietary credit card business, according to a Bloomberg report. The company is seeking to issue at least
$400 million in ABS across four tranches, with the highest-rated tranche initially marketed at a spread of about 80 basis points over the benchmark. The offering could ultimately reach
$500 million and is being arranged by Wells Fargo and Barclays.
The transaction highlights Robinhood's push to expand beyond its core retail brokerage business and build a broader consumer financial platform. Earlier this year, the company unveiled a
$695 platinum-plated credit card, following the launch of its fee-free Gold Card two years ago, as it seeks to compete more directly with premium card issuers such as American Express. According to Fitch Ratings, Coastal Community Bank holds the company's branded credit card accounts.
$HOOD $WFC $BCS