Powersports lenders Horsepower Financial and Octane expanded their funding capacity this week.
Tampa, Fla.-based powersports lender Horsepower on Aug. 6 said it closed a $50 million senior secured credit facility with Coromandel Capital.
Proceeds from the facility will fund lease originations through Horsepower’s network of franchised and independent powersports dealer partners, according to a news release.
It is the company’s third credit facility to date and significantly increases its funding capacity, Horsepower’s Chief Financial Officer Laura Middendorf told Auto Finance News.
“Compared with our prior facilities, we’ve increased our overall borrowing capacity while also reducing our cost of capital,” Middendorf said. “The structure also provides greater flexibility to support the continued growth of our platform.”
Horsepower is focused on continuing to grow the platform and build dealer relationships, Middendorf said, though she noted the company is keeping longer-term capital markets access in mind.
“As the business scales, we’ll continue to evaluate the most effective funding strategies. There are certainly opportunities for asset sales and securitizations in our near future,” she said.
Octane inks 3rd RV, marine ABS deal
New York-based Octane on Aug. 6 said it closed a $337 million securitization backed by fixed-rate installment recreational vehicle and marine loans issued via in-house lender Roadrunner Financial.
The transaction is Octane’s third and largest under its RV and marine shelf, according to a news release.
The lender closed its first RV and marine-backed ABS deal in December 2024 and its second in December 2025.
“As we’ve continued to build the shelf and establish a track record, we believe investors have become increasingly familiar with the collateral, our underwriting approach and the performance of the asset class, which has helped us deepen demand across the capital structure and diversify the investor base,” Nicholas Makarov, senior vice president and head of capital markets at Octane, told AFN.
Thirty investors participated in the transaction, nine of which were new to the platform, Makarov said.
Credit characteristics of the latest deal’s collateral pool are stronger compared with the 2025 issuance, mainly because it has a higher concentration of prime contracts and stronger FICOs, according to a July 23 S&P Global presale report. The report also stated:
- The number of contracts in the portfolio totaled 7,430, down from 7,461 in the 2025 issuance;
- The weighted average (WA) annual percentage rate was 12.69%, down from 13.98%;
- The WA loan-to-value ratio was 107.94%, up from 106.75%;
- The WA FICO was 711, up from 692; and
- The WA original term was approximately 14.8 years, compared with 13.8 years.
The latest deal brought Octane’s total ABS issuance to more than $5 billion since it started its ABS program in late 2019. It has sold or secured commitments to sell $4.9 billion in loans to date, according to the release. Other recent funding moves by Octane include:
- A $750 million forward-flow arrangement with AB CarVal for powersports and outdoor power equipment loans in July; and
- The sale of a $340 million portfolio of powersports and outdoor power equipment loans to affiliates of Bayview Asset Management in June.
Octane’s loan originations rose 29% to $2.1 billion in 2025, according to previous AFN reporting.
Horsepower Financial Services Chief Financial Officer Laura Middendorf will join a dealer-focused discussion at Powersports Finance Summit, a premier event for companies involved in recreational vehicle financing, on Sept. 16-17 at the Renaissance Atlanta Midtown. To learn more about the 2026 event and register, visit www.PowersportsFinance.com.
