Sector developments and company hires

Acquisition
LendingClub is set to acquire Radius Bancorp and its wholly owned online subsidiary Radius Bank in a cash and stock transaction valued at US$185m. The combination of Radius and LendingClub is designed to create a digitally native marketplace bank at scale, with the power to deliver an integrated customer experience. The aim is to enable consumers to both pay less when borrowing and earn more when saving. An additional benefit of the transaction is regulatory clarity via a direct relationship with a primary regulator.

Sprint ruling ‘credit positive’
A US District Court judge last week ruled in favour of the planned merger between T-Mobile US and Sprint Corporation. Moody’s says the move is credit positive for Sprint's spectrum ABS as the merged entity’s credit profile would be stronger than Sprint’s as a stand-alone company, thereby bolstering support for its securitisation programme because of the company’s critical role in the deals' performance. The merged entity will have lower leverage, improved liquidity and a more extensive asset base. In addition, the merger is likely to place the combined entity on a faster path to a nationwide 5G network and strengthen its market position in the US wireless industry. However, the agency notes that some hurdles remain, including a potential appeal by state attorneys general.