Agora Data is sponsoring $112.1 million in asset-backed bonds secured by retail installment loans on new and used vehicles, extended to subprime borrowers, through the AgoraCapital Auto Securities Trust, series 2025-1.
This is Agora Data's first securitization deal, according to Kroll Bond Rating Agency. Asset Securitization Report's deal database notes that the transaction, known as ACAST 2025-1, is slated to close on May 21.
The company started out by providing independent and franchise dealerships with an online platform to manage their retail installment sale contracts (RISCs). Over time, Agora gained performance data on more than $350 billion in auto RISCs, which it used to develop an underwriting and pricing model. Ultimately, it uses that model to purchase those auto loan contracts through dealerships and financial services providers, including banks and credit unions.
Agora Data's borrowers typically have weighted average (WA) credit scores ranging from 500 to 700, KBRA said.
AgoraCapital will issue notes through three tranches of class A, B and C notes, which benefit from initial credit enhancement levels of 38.3%, 25.1%, and 16.3%, respectively, KBRA said. All the notes mature on Nov. 5, 2032, the rating agency said.
Several of ACAST 2025-1 has several features will boost its credit to noteholders, including a sequential pay structure and subordination. Overcollateralization, which starts at 14.8%, has a floor of 2.5% and will increase to 22.6%.
Agora Data can repurchase delinquent or defaulted RISCs from ACAST 2025-1. But that repurchase amount cannot exceed 10% of the aggregate RISC balance, including the deal's prefunding amount.
KBRA noted that Agora does a thorough screening of potential dealers before onboarding them as originators. That includes personal and corporate level background checks, financial analyses, social media research and regulatory filing reviews.
As for the collateral and borrower characteristics, borrowers had a WA credit score of 624, an average loan balance of $14,038, with a WA interest rate of 18.3%.
KBRA assigned ratings of A-, BBB- and BB- to classes A, B and C, respectively.
