GreenSky, an indirect subsidiary of
GreenSky Home Improvement Issuer Trust, series 2025-3, will issue the notes through seven classes of A through E notes, according to Kroll Bond Rating Agency. This is the fifth securitization to come to market through the GreenSky Home Improvement Issuer Trust, and the ninth rated 144A deal backed by home improvement loans through the GreenSky program, according to KBRA.
The three classes of A notes have a legal final maturity date of Dec. 27, 2060, and carry a AAA rating from KBRA. Also, they benefit from initial credit enhancements representing 30.79% of the note balances, KBRA said.
Interest on each class of notes is subordinated to interest payment on the Funding Interest and principal, according to the rating agency. If class A notes fail a credit enhancement rest, a cumulative default ratio amortization event occurs, or the pool balance is 10% or less, then GSKY 2025-3 will move to a sequential pay structure, KBRA said.
Notes also benefit from overcollateralization, which will initially be 5.51% pf 95% of the pool balance, with a target of 6.00%, the rating agency said. They also benefit from subordination and a reserve fund, funded at closing, which must equal 0.50% of the initial note balance, KBRA said.
Aside from the senior notes, KBRA assigns AA to the class B notes; A to the class C notes and BBB and BB to classes D and E, respectively.
