J.G. Wentworth plans to issue a $210 million ABS backed by structured settlement payments.
The deal named JGWPT XXX LLC has been assigned preliminary ratings by Moody's Investors Service. The $192 million, class A notes are rated ‘Aaa’ and the $18 million class B notes are rated ‘Baa2’.
According to Moodys, this latest deal is similar to the previous transactions issued by JG Wentworth and like JGWPT 2013-1 and JGWPT 2013-2; it includes a small pool of lottery receivables constituting around 2.19% of the present value of the receivables.
These lottery receivables are from lottery winnings in Connecticut, Massachusetts, Michigan, New York and Ohio.
Moody's explained in the presale report that lottery receivables in these states, like court-ordered structured settlements, have legal protections and assurances about the “irreversibility of the acquisition of payments.”
The first structured settlement ABS offering was completed in 1997 by J.G. Wentworth. It remains the largest purchaser of structured settlement rights and the most regular issuer of structured settlement-backed ABS.