May 2021 Capital Markets Update

By

Charlie Lienau

May 3, 2021

Disclaimer: As of February 2025, Percent has transitioned from using Annual Percentage Yield (APY) to Coupon Rate for all new investment opportunities. Any references to APY in this post now correspond to Coupon Rate.

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Each month, Percent's Capital Markets team releases an update that takes a look back at the previous month's dealflow and highlights the upcoming deal pipeline. Below is Percent's Short Term Note Program (STNP) monthly market update for May 2021.

STNP Market Commentary

• Percent’s Short Term Note Program (“STNP") market (including both Percent and Percent Prime issuances) continued to expand during the month of April.
  • As of May 1st, a total of $48.9 million of notes were outstanding, marking the highest amount ever outstanding on the Percent platform.
  • Following $18.2 million of STNP issuance in April across 11 transactions, total issuance since inception stands at $293.5 million.
  • STNPs issued in April had an average APY of ~12.02%, with average tenors hovering around the 221 days mark.
  • Since inception, Percent has officially returned over $6.4 million in aggregate interest payments to our growing investor base.
  • We were able to meet or increase target transaction sizes across all 11 transactions issued this month.
  • With no new defaults or losses year to date, we continued to maintain a relatively low default rate of 0.96% since inception.

Securities Market Commentary

• This month we are also pleased to announce the successful close of FAT Brands Inc.’s (NAS: FAT) $144 million whole business securitization — the largest structured product transaction in Percent’s history.

• Percent served as the co-lead underwriter alongside Jefferies LLC, making it our third with the company known for its iconic franchise brands like Fatburger and Johnny Rockets. More information available here.

Should you have any questions or would like to learn more about Percent, our issuances or the STNP market, please do not hesitate to reach out to us.

Nothing in this post should be construed as an offer to sell securities or a solicitation of an offer to buy securities. All investment involves risk and the possibility of loss, including loss of principal, and neither past performance nor forward-looking information is a guarantee of future results. Any decision to invest must be based solely upon the information set forth in the offering documents, regardless of any information that may have been otherwise furnished, including in this update.