Avant, the provider of unsecured consumer loans, is in the market to raise $200 million in asset-backed securities (ABS), through the Avant Loans Funding Trust, 2026-REV1.
The collateral for the deal is a trust certificate, which is backed by unsecured consumer loans originated through the Avant platform. The deal will issue six classes of notes, classes A through F, all of which have a legal final maturity date of May 15, 2036, according to Kroll Bond Rating Agency.
The class A, B,C, D, E and F notes benefit from initial credit enhancement levels of 67.38%, 50.79%, 34.44%, 21.99%, 7.06% and 3.24%, respectively and KBRA assigns them preliminary ratings of AAA, AA, A-, BBB-, BB- and B.
Proceeds from the sale of the notes will be deposited into the reserve account and buy loans from Avant's warehouse facilities, KBRA said. The rating agency said the reserve account will be funded in an amount equaling 0.25% of the initial note balance.
By the Dec. 15, 2025 statistical cutoff date, the pool had a balance of $215 million.
During the deal's three-month prefunding period, the deal can purchase an additional $3.7 million in loans. The structure also includes a two-year revolving period, which includes the three-month prefunding period, when the transaction can purchase additional loans, KBRA said. They will need to meet eligibility criteria and be subject to concentration limits.
The deal's structure stipulates that it will not make any principal payments during the revolving period unless it needs the cashflow to maintain the required overcollateralization amount, KBRA said.
AVNT 2026-REV1 will repay noteholders sequentially, prioritizing the class A notes, KBRA said.
In terms of the required overcollateralization, the deal must maintain a level of 3.00% of the adjusted pool balance.
