J.G. Wentworth has completed a $207.5 million of securities backed by structured settlement receivables in its third transaction of 2014.
Credit Suisse and Barclays lead managed the deal, called J.G. Wentworth XXXIII LLC Series 2014-3.
The issue consists of two classes of placed notes: $186.1 million of class A notes with preliminary triple-A ratings from Moody’s Investors Service and DBRS pay a fixed rate of 3.50%, and $21.4 million of class B notes rated triple-B pay 4.40%.
The notes are backed by a pool of court-ordered transfers of structured settlement payments and lottery receivables along with a $71 million cash prefunding account for the purchase of additional receivables within 90 days of the transaction’s close.
The structure and collateral of this securitization are both very similar to J.G. Wentworth's 2014-2 deal, except that this one includes receivables which were purchased from the issuer’s Series 2002-A transaction, which was recently repaid. The 2002-A receivables include a small portion (around 0.90%) of receivables that were originated without a court transfer order.
A small portion of the 2002-A receivables (around 0.53% based on present value) is also missing documentation or has limited documentation. The issuer must procure a copy of the court transfer order for the missing documentation receivables within 60 days of closing or it will be obligated to repurchase such receivables, according to the presale report.
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.