WSJ: Prosper in talks for $5B loan-sale deal

Aug. 04, 2016 11:28 AM ETLendingClub Corporation (LC)LCBy: Stephen Alpher, SA News Editor1 Comment
  • Potential buyers include Fortress, Jefferies, George Soros, and Third Point, according to the report, and if a deal can be inked, it could help ease concerns that Prosper and peers like LendingClub (LC -0.6%) can continue to find funding.
  • Prosper saw a 12% decline in lending volume in Q1, forcing layoffs of about 28% of its staff, as buyers of its loans began to back off amid governance issues at LendingClub and broader concerns about credit quality. Volume is expected to drop big again in Q2.
  • The loans Prosper is in talks about selling would be at face value, but buyers might also receive equity warrants, which could dilute existing shareholders.

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