Americor Funding, a debt management company which offers unsecured loans to consumers, is raising $105.9 million in asset-backed bonds through the AMCR ABS Trust, series 2024-A.
Credit9 is the sponsor, servicer and administrator on the deal, according to ratings analysts at Morningstar DBRS. The transaction will issue notes through three tranches of class A, B and C notes. Jeffries is underwriter on the deal, which is slated to close on October 25. After closing, the transaction will use a prefunding amount, about 26.5% of the total collateral balance, to acquire additional loans, DBRS said.
The prefunding period is about three months, the rating agency said. The transaction will subject the receivables to concentration limits. Loan concentration limits are expected to maintain consistency in the collateral pool and DBRS said it incorporated them into its loss analysis.
All the notes, which are fixed rate, have an Aug. 18, 2031 final maturity date, DBRS said. The transaction will repay investors sequentially. The class A notes will receive principal payments in full before payments begin on the class B notes. After that, the class B notes will need to be repaid fully before payments start on the C notes, DBRS said.
Americor enrolls consumers' debts, extending loans through a partnership with Cross River Bank, and negotiates settlements with their creditors. The clients agree to the terms of their settlements and make payments toward them, according to DBRS.
The notes benefit from several forms of credit enhancement, including subordination, overcollateralization, a reserve fund and excess spread, the rating agency said.
DBRS assigns ratings of A, BBB and BB to classes A, B and C, respectively.
