News About Tech from all around the world » Lending Club Update: SEC Filing for $600 Million in Member Payment Dependent Notes

Below is the announcement that Lending Club is making today regarding their moving forward. Here’s my simple take – lenders will buy “notes” and then use the funds from those notes to provide loans to Lending Club members. Since this information is very specific, I’ve decided to post the entire press release below. It’s important to note that Lending Club is still in a quiet period until the filing is effective.

UPDATE:

This from the S-1 filing:

The proceeds we receive from the sale of each series of Notes will be designated by the lender members who purchased the Notes of that series to fund an unsecured consumer loan originated through our platform to an individual consumer who is one of our borrower members.

…

A series of Notes will be issued only if and when the corresponding member loan closes and is funded. A member loan will close and be funded if the borrower member loan request has received full funding commitments, or if the borrower member chooses to accept partial funding of the loan request after receiving funding commitments for the loan request.

…

We will offer Notes to our lender members at 100% of their principal amount. The Notes will be offered only through our website, and there will be no underwriters or underwriting discounts.

This is the S-1 definition of the mechanics for lenders at LC investing in borrower loans.

The webby’s are kind of like the oscars for web sites.

Webby winners

Webby Award Winner
Lending Club
http://www.lendingclub.com Lending club

People’s Voice Winner
Mint Mint
http://www.mint.com Mint team