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JG Wentworth Sells $216M Structured Settlement ABS

JG Wentworth priced $216 million of notes backed by structured settlement payments, according to a person familiar with the transaction.

The $198 million senior tranche, which is rated ‘Aaa’ by Moody’s Investors Service and ‘AAA’ by DBRS, has a coupon of 3.22% and was priced to yield 3.25%.

The $18.59 million junior tranche, which is rated Baa2/BBB, has a coupon of 4.94% and was priced to yield 5%.

Deutsche Bank and Barclays were joint bookrunners; Natixis was co-manager.

The deal's structure is similar to that of JG Wentworth's previous securitization, except that this one includes, for the first time, a small pool of lottery receivables, according to Moody's presale report. The receivables, which constitute around 2.25% of the present value of pool, are from lottery winnings in Massachusetts, New York and Virginia.

Other receivables are comprised of structured settlement payments and assignable annuity streams. There is also approximately $87,905,207 in cash set aside for the purchase of additional receivables.

 

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