Purchasing Power Secures $225M ABS Deal at Lower Rates — PROG Holdings, Inc.

Event summary

Purchasing Power, a PROG Holdings subsidiary, closed a $225M asset-backed securities (ABS) transaction on March 3, 2026.
The deal achieved an over 180 basis-point reduction in weighted average coupon rate compared to its 2024 ABS transaction.
The transaction, Purchasing Power Funding 2026-A, was rated by KBRA with AAA for Class A notes down to BB- for Class E notes.
Proceeds will repay existing facilities and fund originations across Purchasing Power’s platform.

The big picture

This ABS transaction marks Purchasing Power’s first foray into the securitization market post-acquisition by PROG Holdings, reflecting the company’s efforts to optimize its funding arrangements. The deal underscores the resilience of Purchasing Power’s payroll-deduction model and its ability to attract institutional investors, even amid broader market volatility. The strategic move aligns with PROG Holdings’ broader push to enhance financial flexibility for its subsidiaries.

What we're watching

Funding Efficiency: How the 180 basis-point reduction in coupon rates will impact Purchasing Power’s cost of capital and profitability.
Investor Demand: Whether the strong investor demand for this ABS transaction signals broader confidence in PROG Holdings’ post-acquisition strategy.
Execution Risk: The pace at which Purchasing Power can deploy the proceeds to drive originations and growth across its platform.