Affirm has returned to sponsor a $634.5 million securitization of revenue from a pool of unsecured loans extended to online shoppers, in a deal that is slightly larger than an earlier transaction that itself was upsized.
Affirm Asset Securitization Trust, series 2024-X1, will issue class A, b, C and D notes through four tranches of notes, according to ratings analysts at DBRS Morningstar. Yields are expected to range from 6.3% on the AAA notes to 7.4% on the BBB notes, according to Asset Securitization Report's deal database. Barclays, BMO Capital Markets, CIBC World Markets and Morgan Stanley are all managers on the deal, according to ASR.
Cross River Bank, Celtic Bank, Affirm Loan Services and Lead Bank all originated the 1,049,192 loans in the pool, according to DBRS. In total, the loans have an outstanding principal balance of $956 million, and on average the underlying loans have a balance of $911. On a weighted average (WA) basis, the loans have an original term of 25 months, with a remaining term of 20 months and a interest rate of $26.8%. Also on a WA basis, the underlying collateral has a credit score of 679.
Affirm will also act as servicer on the notes, and is also custodian and administrator, the ASR database said, which is a smaller contingent of banks that managed the 2024-A series. DBRS points out that Firstmark Services is the deal's backup servicer and documentation agent.
June 17 is Affirm Asset Securitization Trust's first repayment distribution date, and all the notes, which are priced against the three-month interpolated yield curve, have a final schedule payment date of May 15, 2029, DBRS said.
Class B, C and D notes naturally provide subordination to the deal, but the notes also benefit from overcollateralization and excess spread.
DBRS assigns ratings of AAA, A, A and BBB to classes A, B, C and D, respectively.
