J.G. Wentworth's latest $173 million transaction will securitize lotto winnings, along with structured settlement payments and assignable annuity streams.
Moody's Investors Service assigned preliminary ratings to the deal, which is structured with $158.5 million of ‘Aaa’ rated class A notes and $14.8 million of ‘Baa2’ rated class B notes.
The deal is structured very similar to J.G. Wentworth’s previous securitization deals. However Moody’s noted in a presale report that this deal, in line with the issuer’s first deal issued in 2013, includes a small pool of lottery receivables.
JGWPT 2013-2 lottery receivables make up approximately 3.97% of the present value of the receivables.
These lottery receivables are from lottery winnings in California, Connecticut, Florida, Massachusetts, New Jersey, New York, Ohio and Texas.
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.”