J.G. Wentworth said Tuesday it issued $214 million of bonds backed primarily by structured settlement payments.

The issue consists of two classes of placed notes: $193.15 million of class A notes rated triple-A by Moody’s Investors Service and DBRS pay 3.26%, and $20.96 million of class B notes raed ‘Baa2’ by Moody’s and ‘BBB’ by DBRS  pay 4.25%.

Credit Suisse was the sole structuring advisor and was joined by Barclays as joint book-running manager. Deutsche Bank Securities and Natixis acted as co-managers.

The notes will primarily be collateralized by payments from a pool of rights arising under court ordered structured settlement payment purchase contracts, court ordered lottery payment purchase contracts and annuity contracts primarily originated by the J.G. Wentworth and Peachtree Financial Solutions companies.

Among credit strengths cited by DBRS in its presale report is the diversity of highly rated insurance companies making the settlement payments. They have a weighted average credit rating of approximately “A,” with 76.39% of the pool backed by carriers with at least an A (low) rating and 86.74% backed by carriers with at least a BBB rating. In addition, no single provider rated below BBB (low) comprises more than 0.73% of the pool.

The deal is partially prefunded: only 60% of the assets will be purchased at closing; the remaining 40% of proceeds from the deal will be put to work within 90 days of closing. JG Wentworth may use a portion of the prefunding account to purchase additional lottery receivables, potentially boosting the concentration of this type of asset as high as 5.50%.

“This represents the 41st securitization for The J.G. Wentworth Company and its predecessors, and we are very pleased with the execution,” John Schwab, the company’s chief financial officer, said in a press release. “We continue to see consistent interest and demand from institutional investors for both classes of our bonds.”

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