Pagaya Structured Products is bringing $321.4 million in asset-backed securities (ABS) to fixed-income investors backed by unsecured consumer loans.
The deal is collectively known as PAID 2025-REV1 and consists of Pagaya AI Debt Grantor Trust 2025-REV1 and Pagaya AI Debt Trust 2025-REV1, according to Kroll Bond Rating Agency.
Among changes from the PAID 2025-8 transaction, the current deal has a 24-month revolving period when eligible collateral can be purchased, if the purchased assets comply with specific criteria and concentration limits, KBRA.
PAID 2025-REV1 will issue five classes of A through E tranches of notes, much less than the 15 rated notes that PAID 2025-8, which closed in early December, the rating agency said.
Another difference is that Achieve did not originate any loans included in the current deal, the rating agency said. Among the deal's lenders, however, are LendingClub Bank, CRB & Blue Ridge Bank and WebBank, KBRA said.
All of the notes have a legal final maturity date of Aug. 15, 2035, and the deal is its 58th publicly rated securitization that Pagaya Structured Products has sponsored.
Structurally, the deal benefits from initial overcollateralization levels that represent 8.15% of the notes, compared to 0.30% on the PAID 2025-8 deal, the rating agency said. The structure also includes 12.8% in gross excess spread, up from 12.51% on the PAID 2025-8 deal, the rating agency said.
Notes will be initially supported by funds that will be deposited over three months into the prefunding account, KBRA said. During that period, PAID 2025-REV1 will buy the deal's assets—whole loans originated through artificial intelligence (AI) underwriting, KBRA said.
The class A, B, C, D and E notes will benefit from initial credit enhancement levels of 79.2%, 42,4%, 34.5%, 25.0% and 9.7%, respectively.
KBRA assigns ratings of AAA, AA-, A-, BBB- and BB- to the A, B, C D and E notes.
