In what has come to be an annual event, J.G. Wentworth, a Bryn Mawr, Pa.-based specialty finance company, has issued its fifth private Rule 144A deal backed by structured settlement obligations in five years. The $227 million deal, tagged 321 Henderson Receivables I Trust 2005-A, is the largest of the company's four other deals and is led by Deutsche Bank Securities. Officials from Deutsche Bank could not be reached for comment, nor could officials from J.G. Wentworth.
The $183 million A1 tranche of the deal, with a weighted average life of 7.5 years and a legal final maturity in 2040, is talked in the 23 basis points over one-month Libor area. The $42 million A2 tranche, with a weighted average life of 17 years and a legal final maturity in 2046, while the B class tranche is a mere $2 million and has a weighted average life of 18 years, with a legal final in 2055. Since 2001, J.G. Wentworth has issued structured settlement backed deals in sizes of $127 million, $60 million, $96 million and $152 million each year.
J.G. Wentworth specializes in buying financial obligations from people who, in many cases, would otherwise have to wait years to receive their money, as in the case of annuities or legal settlements. The company operates in 39 states and operates a structured settlement purchase program, as well as an annuity purchase program and a tobacco quota purchase program geared toward tobacco farmers owed periodic payments from the government.
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