Colony America Homes is marketing a $513 million securitization of single family rental homes, according to rating agency presale reports.

Colony America Homes 2014-1 has a trust balance of $513.6 million; it is collateralized by a single floating rate loan that is in turn secured by 3,399 single family residential properties and first-priority pledge of the equity in the borrower.

The notes have an initial three-year term with two consecutive one-year extension options, for a total of five years.

The trust will issue four classes of notes rated by Moody’s Investors Service and Kroll Bond Rating Agency: the $191 million A tranche is rated ‘Aaa’/’AAA’; the $42 million B tranche is rated ‘Aa2/’AA+’; the $56 million C tranche is rated ‘A2’/’AA-‘; and the $40.5 million D tranche is rated ‘Baa2’/’A’. There is also an $84.1 million E tranche that is rated ‘BBB’ by Kroll; Moody’s did not rate it.

Subject to certain conditions, including the payment of spread maintenance premium and prior notice, the borrower can voluntarily prepay the loan in whole or in part at any time. The minimum prepayment is $1,000,000 and can increase in increments of $100,000.

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