Web-based loan auction platform DebtX Securities, Inc. is in the process of selling roughly $53 million of boat-loan collateral for an unnamed originator, according to the company. Unlike the more conventional auctions over the DebtX platform, these loans will be offered in a Dutch auction fashion, where interested parties will bid for allocations, with the price pre-set at par, rather than letting the auction set the price.
"Whoever takes the most at par wins the bidding," stated Kingsley Greenland, chief executive officer of DebtX. This is a departure from DebtX's standard auction process, for which the loans go to the highest bidder, be it a premium or discount.
The collateral is all prime, Greenland added, with a weighted average Fico score of 716. The WAC for the portfolio is 8.30% and the weighted average maturity is 15 years. Seasoning for the collateral is four years. Not surprisingly, considering the collateral, a high percentage of the loans were originated in California and Florida.
The process to find serious bidders is just beginning, with interested parties currently allowed to examine the collateral on a loan-specific basis. DebtX is already working with potential buyers, as the bidding date rapidly approaches.
Based in Boston, DebtX is a web-based loan-auction platform that serves commercial banks, insurance companies, investment banks and even government agencies.