Purchasing Power, a subsidiary of PROG Holdings, Inc. (NYSE: PRG) and leading voluntary employee benefit program provider which allows employees to purchase products and services through automatic payroll deductions, today announced the successful closing of its latest asset‑backed securities (ABS) transaction. The $225 million issuance of notes, which achieved an over 180 basis-point reduction in the weighted average coupon rate as compared to the 2024 ABS transaction, is backed by a diversified pool of consumer receivables originated through Purchasing Power’s payroll purchase platform.

This transaction marks the first time a subsidiary of PROG Holdings has accessed the ABS market, representing an important milestone following PROG’s acquisition of Purchasing Power in January 2026.

"This successful securitization transaction reflects the strength and resilience of Purchasing Power’s payroll‑deduction purchasing model and the quality of its underlying receivables," said Lee Wright, President of Purchasing Power. "We are pleased with the strong investor demand and view this as an important step in our post-acquisition efforts to improve Purchasing Power’s funding arrangements and overall performance."

The transaction, Purchasing Power Funding 2026-A, was structured as a multi‑tranche offering and received ratings from Kroll Bond Rating Agency (KBRA), including AAA for the Class A notes, AA for the Class B notes, A for the Class C notes, BBB for the Class D notes, and BB‑ for the Class E notes. The notes were placed with a broad and diversified group of institutional investors.

Proceeds from the transaction are being used to repay existing facilities and fund originations across the Purchasing Power platform.

Barclays Capital Inc. served as structuring agent and initial purchaser for the transaction. Wilmington Trust, National Association acted as trustee and collateral administrator.