J.G. Wentworth plans to issue $231 million of structured settlements backed securities.
The deal, JGWPT XXXI LLC, Series 2014-1 has been assigned preliminary ratings by Moody's Investors Service. The class A notes are sized at $209.4 million and are rated Aaa’. The $21.5 million class B notes are rated Baa2
J.G. Wentworth’s latest securitization is very similar to its three 2013 transactions, which are all collateralized by a pool of structured settlement payments, assignable annuity streams and a small pool of lottery receivables.
In the latest deal the lottery receivables make up around 0.51% of the present value of the receivables, according to the Moody’s presale. These lottery receivables are from lottery winnings in Massachusetts, Michigan and New York.
“Moody's believes that the lottery receivables in this transaction have legal protections and assurances about the irreversibility of the acquisition of payments that are similar to a court-ordered structured settlement,” according to the presale.
The deal again utilizes a prefunding account. Amounts on deposit in the prefunding account may be used within a prefunding period of ninety days after closing to acquire additional receivables.