Avant and OneMain Financial are each pursuing their next non-prime securitizations pooled by unsecured consumer loans.
Avant Loans Funding Trust 2021-REV1 is a $200 million note offering backed by loans underwritten through its Avant platform.
Avant will issue five classes of notes including $108.95 million of Class A notes with preliminary AA- rating from Kroll Bond Rating Agency. The senior notes are supported by 46.45% credit enhancement.
The deal is the first offering of the year for Avant, which lends between $2,000 and $35,000 to consumers with FICO scores ranging from 550 to 720, on terms between 24-60 months and APRs ranging up to 35.95%.
The loans typically are for debt consolidation, emergency expenses, life events or auto repairs.
In 2020, according to KBRA, Avant originated about half ($458 million) of its 2019 lending volume through its platform, with loans underwritten by banking partner WebBank, a chartered industrial bank based in Utah.
About 31% of the deal’s pool is prefunded. The pool also has a two-year revolving period in which Avant may add newly issued loans to the deal as other loans are paid down. Loans made to borrowers with low FICOs (550) or who lack credit scores can make up to 10% of the pool.
The $500 million OneMain Financial Issuance Trust 2021-1 is the first deal of the year for OneMain, which has previously issued 23 consumer loan securitizations and five auto-loan ABS deals.
The loans are originated across the 1,500 OneMain branches in the U.S.
The transaction features a $235.99 million Class A-1 tranche benefitting from 33.92% credit enhancement and Class A-2 notes totaling $118 million. All of the notes carry preliminary AAA ratings from KBRA, DBRS Morningstar and S&P Global Ratings.
The OneMain 2021-1 deal will include a five-year revolving period.
