The Massachussetts Educational Financing Authority is issuing $162.23 million of private student loan revenue bonds, according to Fitch Ratings. The offering consists of two tranches:a $118.99 million senior tranche maturing in July 2032 is rated AA by Fitch Ratings; a $43.24 million subordinate tranche maturing in July 2046 is unrated.
The master trust will be collateralized by approximately $188.8 million of existing private student loans originated with proceeds from a previous bond offering; approximately $170 million of new loans is expected to be added to the trust at the end of the acquisition period from the proceeds of this issuance. An additional $11.2 million of additional loans are expected to be added with existing recycling funds.
MEFA underwrites loans to borrowers who live or attend college or graduate school in state; approximately 98% are co-signed and all loans have a minimum FICO of 670 at the time of application.
Front-End CRT: Fannie Mae has secured commitments from a group of reinsurers for a new front-end credit insurance risk transfer transaction. This will be the third transaction completed on a “flow” basis, meaning the risk transfer will have been committed prior to Fannie Mae’s acquisition of the covered loans and that the insurance coverage will be effective as soon as the loans are acquired. The loan pool is expected to be filled over the course of nine months, beginning with second quarter 2017 deliveries. Fannie Mae will retain risk for the first 50 basis points of loss on an approximately $5.2 billion pool of loans. If this approximately $26 million retention layer is exhausted, the participating mortgage insurance companies will cover the next 265 basis points of loss on the pool, up to a maximum coverage of approximately $138 million
Canadian CARDS: Canadian Tire Bank, a captive finance company, plans to issue an unspecified amount of notes backed by credit card receivables through its Glacier Credit Card Trust. Scotia Capital and CIBC World Markets are the lead dealers. The offering consists of two tranches of notes; Moody’s and DBRS both expect to assign triple-A ratings to the senior tranche, which benefits from 6.5% subordination and an “enhancement amount” equal to 5.5% of the unadjusted invested amount, as well as excess spread.
European CLOs: Blackstone / GSE Debt Funds Management is issuing a new collateralized loan obligation, Clontarf Park CLO, backed by a €400 million broadly syndicated loans. It’s manager’s 15th transaction since the financial crisis, according to Moody’s. And Barings, formerly Babson Capital Management, is refinancing Babson Euro CLO 2014-2, a deal with a par amount of €549 million, according to Moody’s.