IPFS Corp., through its wholly-owned subsidiary PFS Financing Corp., is issuing Premium Finance Asset Backed Notes, Series 2011-B.
Moody's Investors Service has assigned provisional ratings to the $200 million transaction's $192 million, 'Aaa(sf)' floating-rate Class-A notes and the the $8 million. 'A3(sf)' floating-rate Class-B notes.
The deal is backed mainly by loans extended to commercial insurance buyers with property or one-year casualty insurance policies. The loan's proceeds pay premiums because of the insurance company, said a presale report from Moody's.
The rating agency said that loans are secured by the right to receive the unearned premium amounts from insurance firms if the borrower fails to pay the amounts due on the premium finance loans.
According to Moody's. the notes' assigned ratings are mainly based on the the insurance premium finance loan receivables' quality, the pool's insurance carriers' creditworthiness, the servicer's abilities, and the deal's structural and legal features.
The issuer is a master trust and the 2011-B notes will be one of several series of notes outstanding that will have a pro rata in the collateral. The main collateral backing the notes are
insurance premium installment contracts and the right to collect the unearned premium upon a contract default. Wells Fargo Bank, National Association will be trustee and back-up servicer.
IPFS, directly or through subsidiaries, is one of the biggest property and casualty insurance premium finance loans originators to commercial and individual obligors in the U.S. As of July 31, IPFS had roughly $2.2 billion outstanding receivables.
Aside from a myriad of auto deals in the market, World Financial Network is coming out with a credit card deal rated by both Standard and Poor's and Fitch Ratings. For a copy of the preliminary prospectus click here.
RBC Capital Markets and Royal Bank of Scotland are joint bookrunners on the credit card transaction. Barclays Capital, Bank of America Merrill Lynch, Credit Suisse, JPMorgan Securities and Wells Fargo Securities are co-managers on the ABS.