JGWPT Holdings, the parent company of JG Wentworth and Peachtree Financial, closed its $204 million securitization of notes backed by structured settlement and fixed annuity payments.
This latest deal comprises payment streams purchased by both of these subsidiaries.
J.G. Wentworth was the first issuer to securitize structured settlement payment streams in 1997. Since then, J.G. Wentworth has issued 24 securitizations backed by structured settlement and fixed-annuity receivables totaling more than $3 billion.
Peachtree Financial was also an active ABS issuer of deals backed by structured settlement payment streams. The firm completed seven securitizations from 2004 to 2010 totaling more than $700 million.
The recently completed $204 million ABS comprised two issued classes of notes: $174 million of class A notes rated 'Aaa' by Moody’s Investors Service and 'AAA' by DBRS and $16 million of class B notes rated 'Baa2' by Moody’s and 'BBB' by DBRS.
The structure also included a residual class of $14 million, which was retained by the issuer. Jefferies acted as co-lead arranger and bookrunner and Barclays Capital was co-lead arranger.
“This was our first joint securitization of J.G. Wentworth LLC and Peachtree Financial originated product under a single parent holding company," said JGWPT Chief Investment Officer Stefano Sola. "The pricing and demand for the transaction reflects the confidence of institutional investors in the new, joint securitization program.”
He added that the deal attracted a number of new institutional investors to the structured settlement space.