Postgraduate student lender Access Group Inc. brought a pair of student loan transactions last week, each incorporating stepdown capitalized interest accounts protecting against shortfalls that may occur at the front end of capital structure, while loans are still in the grace period.

The capitalized interest accounts within these deals are unique due to the multiple release dates over a two-and-a-half year period. This is the first time such a stepdown feature has been incorporated into a capitalized interest account, which typically has had just one release date protecting against interest shortfalls.

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