LendingClub Corporation (NYSE:LC) Files An 8-K Other EventsItem 8.01 of the Original 8-K and (ii) a typographical error with respect to the interest rate for loan grade A1 in the first table under Item 8.01 of the Original 8-K. As corrected, under the updated interest rates, the interest rate for loan grade D1 has increased 0.38% and the interest rate for loan grade A1 is 5.31%. All other information in the Original 8-K is unchanged.
Effective February20, 2018, interest rates on the LendingClub Corporation ("LendingClub") platform have been updated. Notable changes include an increase of 0.38% for loan grade D1, 0.39% for loan grades D2-D4, 0.40% for loan grade D5, and 0.47% for loan grade E5.
In addition, LendingClub's Chief Investment Officer released his quarterly update, which can be accessed on LendingClub's blog at blog.lendingclub.com. The contents of this blog are not incorporated into this filing.
Set forth below is a chart showing the interest rates assigned to standard program loans for each of the LendingClub loan grades.
|
Loan Grade |
Interest Rate |
|
|
A1 |
5.31 |
% |
|
A2 |
6.07 |
% |
|
A3 |
6.71 |
% |
|
A4 |
7.34 |
% |
|
A5 |
7.96 |
% |
|
B1 |
9.43 |
% |
|
B2 |
9.92 |
% |
|
B3 |
10.41 |
% |
|
B4 |
10.90 |
% |
|
B5 |
11.98 |
% |
|
C1 |
12.61 |
% |
|
C2 |
13.58 |
% |
|
C3 |
14.07 |
% |
|
C4 |
15.04 |
% |
|
C5 |
16.01 |
% |
|
D1 |
17.47 |
% |
|
D2 |
18.45 |
% |
|
D3 |
19.42 |
% |
|
D4 |
20.39 |
% |
|
D5 |
21.85 |
% |
|
E1 |
22.90 |
% |
|
E2 |
23.87 |
% |
|
E3 |
24.84 |
% |
|
E4 |
25.81 |
% |
|
E5 |
26.77 |
% |
|
F1 |
28.72 |
% |
|
F2 |
29.69 |
% |
|
F3 |
30.17 |
% |
|
F4 |
30.65 |
% |
|
F5 |
30.75 |
% |
|
G1 |
30.79 |
% |
|
G2 |
30.84 |
% |
|
G3 |
30.89 |
% |
|
G4 |
30.94 |
% |
|
G5 |
30.99 |
% |
Illustration of Servicing Fee and Annual Returns for Fully Performing Loans of Each Loan Grade
The following tables illustrate hypothetical annual return information with respect to our Member Payment Dependent Notes, grouped by LendingClub grade and term. The information in these tables is not based on actual results for investors and is presented only to illustrate the effects of LendingClub’s 1.00% servicing fee by grade on hypothetical annual Member Payment Dependent Note returns. By column, each table presents:
|
the reduction in the annual return due to LendingClub's 1.00% servicing fee on both interest and principal payments; and |
•the hypothetical annual returns on Notes, net of LendingClub's servicing fee.
Three Year Term
|
Loan Grade |
Interest Rate |
Reduction in Note Return due to 1.00% Servicing Fee* |
Note Returns After LendingClub's Servicing Fee |
|
A1 |
5.31% |
0.67% |
4.64% |
|
A2 |
6.07% |
0.67% |
5.40% |
|
A3 |
6.71% |
0.68% |
6.03% |
|
A4 |
7.34% |
0.68% |
6.66% |
|
A5 |
7.96% |
0.68% |
7.28% |
|
B1 |
9.43% |
0.69% |
8.74% |
|
B2 |
9.92% |
0.69% |
9.23% |
|
B3 |
10.41% |
0.69% |
9.72% |
|
B4 |
10.90% |
0.69% |
10.21% |
|
B5 |
11.98% |
0.70% |
11.28% |
|
C1 |
12.61% |
0.70% |
11.91% |
|
C2 |
13.58% |
0.70% |
12.88% |
|
C3 |
14.07% |
0.71% |
13.36% |
|
C4 |
15.04% |
0.71% |
14.33% |
|
C5 |
16.01% |
0.71% |
15.30% |
|
D1 |
17.47% |
0.72% |
16.75% |
|
D2 |
18.45% |
0.72% |
17.73% |
|
D3 |
19.42% |
0.73% |
18.69% |
|
D4 |
20.39% |
0.73% |
19.66% |
|
D5 |
21.85% |
0.74% |
21.11% |
|
E1 |
22.90% |
0.74% |
22.16% |
|
E2 |
23.87% |
0.75% |
23.12% |
|
E3 |
24.84% |
0.75% |
24.09% |
|
E4 |
25.81% |
0.76% |
25.05% |
|
E5 |
26.77% |
0.76% |
26.01% |
|
F1 |
28.72% |
0.77% |
27.95% |
|
F2 |
29.69% |
0.78% |
28.91% |
|
F3 |
30.17% |
0.78% |
29.39% |
|
F4 |
30.65% |
0.78% |
29.87% |
|
F5 |
30.75% |
0.78% |
29.97% |
|
G1 |
30.79% |
0.78% |
30.01% |
|
G2 |
30.84% |
0.78% |
30.06% |
|
G3 |
30.89% |
0.78% |
30.11% |
|
G4 |
30.94% |
0.78% |
30.16% |
|
G5 |
30.99% |
0.78% |
30.21% |
* Impact of Note servicing fees is computed using the loan’s contractual cashflows; no charge-off losses or prepayments are projected over the loan’s life that would otherwise affect the loan’s projected cashflows.
Five Year Term
|
Loan Grade |
Interest Rate |
Reduction in Note Return due to 1.00% Servicing Fee* |
Note Returns After Lending Club's Servicing Fee |
|
A1 |
5.31% |
0.41% |
4.90% |
|
A2 |
6.07% |
0.42% |
5.65% |
|
A3 |
6.71% |
0.42% |
6.29% |
|
A4 |
7.34% |
0.42% |
6.92% |
|
A5 |
7.96% |
0.42% |
7.54% |
|
B1 |
9.43% |
0.43% |
9.00% |
|
B2 |
9.92% |
0.43% |
9.49% |
|
B3 |
10.41% |
0.43% |
9.98% |
|
B4 |
10.90% |
0.44% |
10.46% |
|
B5 |
11.98% |
0.44% |
11.54% |
|
C1 |
12.61% |
0.44% |
12.17% |
|
C2 |
13.58% |
0.45% |
13.13% |
|
C3 |
14.07% |
0.45% |
13.62% |
|
C4 |
15.04% |
0.45% |
14.59% |
|
C5 |
16.01% |
0.46% |
15.55% |
|
D1 |
17.47% |
0.47% |
17.00% |
|
D2 |
18.45% |
0.47% |
17.98% |
|
D3 |
19.42% |
0.47% |
18.95% |
|
D4 |
20.39% |
0.48% |
19.91% |
|
D5 |
21.85% |
0.49% |
21.36% |
|
E1 |
22.90% |
0.49% |
22.41% |
|
E2 |
23.87% |
0.50% |
23.37% |
|
E3 |
24.84% |
0.50% |
24.34% |
|
E4 |
25.81% |
0.51% |
25.30% |
|
E5 |
26.77% |
0.51% |
26.26% |
|
F1 |
28.72% |
0.52% |
28.20% |
|
F2 |
29.69% |
0.53% |
29.16% |
|
F3 |
30.17% |
0.53% |
29.64% |
|
F4 |
30.65% |
0.53% |
30.12% |
|
F5 |
30.75% |
0.53% |
30.22% |
|
G1 |
30.79% |
0.53% |
30.26% |
|
G2 |
30.84% |
0.53% |
30.31% |
|
G3 |
30.89% |
0.53% |
30.36% |
|
G4 |
30.94% |
0.53% |
30.41% |
|
G5 |
30.99% |
0.53% |
30.46% |
* Impact of Note servicing fees is computed using the loan’s contractual cashflows; no charge-off losses or prepayments are projected over the loan’s life that would otherwise affect the loan’s projected cashflows.
(S)
About LendingClub Corporation (NYSE:LC)
LendingClub Corporation (Lending Club) provides online marketplace to connect borrowers and investors. Consumers and small business owners borrow through Lending Club. Investors use Lending Club to earn risk-adjusted returns from an asset class that is only available on a limited basis to large institutional investors. Its technology automates aspects of operations, including the borrower application process, data gathering, credit decisioning and scoring, loan funding, investing and servicing, regulatory compliance and fraud detection. Its platform offers analytical tools and data to enable investors to make decisions and assess their portfolios. Its technology platform has allowed it to expand its offerings from personal loans to include small business loans, and to expand investor classes from individuals to institutions and create various investment vehicles. Its solution offers an online application process and provides borrowers with access to live support and online tools.
