The Iowa Student Loan Liquidity Corp. is marketing $40.69 million revenue bonds.
The Series 2015-A consists of a single class of notes with a preliminary A’ rating from Standard & Poor’s.
The loans are serviced by Aspire Resources Inc., a wholly owned subsidiary of ISLLC; the backup servicer is the Pennsylvania Higher Education Assistance Corp.
Morgan Stanley is the underwriter.
The notes benefit from approximately 26.7%-30.4% credit support, as calculated by S&P’s, which provides coverage of approximately 2.5x-2.8x the rating agency’s expected net loss range of 10.5%-11.0%.
The issuer expects to use the bonds' proceeds to contribute approximately $29.4 million of private student loans and $5.4 million of Federal Family Education Loan Program loans and to deposit $12 million into the acquisition account to originate private student loans during an acquisition period ending July 1, 2016. These private student loans will be originated under ISL's Partnership Advance Education Loan (PAEL) program for the 2015-2016 academic year.