Americor Funding is sponsoring a sale of $153.1 million in asset-backed bonds (ABS), backed by debt settlement fees, coming to market through the AMDR ABD Trust 2025-1.
The transaction is the inaugural securitization for Americor, an Irvine, Calif.-based which offers debt resolution services, personal loans, debt resolution loans, mortgages and home equity lines of credit, and the first rated ABS securitization backed by debt settlement fees, according to the Kroll Bond Rating Agency.
Americor earns fees from clients once they are enrolled in a debt settlement program. The company determines the amount when the consumer enrolls and is calculated as a percentage of the total enrolled debt. Typical debt settlement timelines range between 30 and 60 months from the time of enrollment.
KBRA also noted that the weighted average state fee percentage for the AMDR 2025-1 pool is 26.46%.
AMDR 2025-1 will sell the notes to investors through two tranches of class A and B notes, both of which have a legal final maturity date of Dec. 19, 2033.
Credit enhancement on the notes includes overcollateralization, subordination, a reserve account equal to 0.75% of the initial note balance, and gross excess spread of about 6.18%, KBRA said.
AMDR 2025-1 is a full turbo transaction, the rating agency said. All available collections—after interest payments, expenses and required reserve account amounts—will be used to pay down principal on the notes sequentially.
KBRA assigns BBB- and BB- to the class A and class B notes, respectively.
