Alternative student loan issuer Brazos Higher Education Service Corp. is slated to tap the asset-backed market twice more before year-end, company sources say.
Brazos last came to market in the first quarter with a $500 million student loan-backed deal. The multi-tranche deal was managed by Salomon Smith Barney. Other than that, Brazos has remained pretty inactive for 2000.
"Everything's been kind of quiet for the summer," said Murray Watson, president of the company.
But it looks as if issuance will pick up for the small student loan sector securitizer going forward.
"We'll be coming to market at least once, probably twice between now and year-end," said Watson. "One will be in late September, early October and the next will probably be the first week of December."
In reference to the size of the transactions, Watson said that one will be in the $700 million to $750 million range, while the other may cap out at $500 million.
"It depends," he said. "We already have about $500 million in warehouse facilities. We've got several deals that we've already got bids on."
It is expected that Salomon will act as lead manager on both transactions.
Brazos broke into the asset-backed arena in 1994 with a $98 million student loan-backed deal. Since its ABS birth, it has completed several securitizations, issuing two to four times in the market each year. To date, Brazos has securitized assets such as Federal Family Education Loan Program loans and consolidated loans under the U.S. Department of Education Title IV, privately guaranteed student loans and private insured student loans.