Libra Solutions Intermedia Holdco has entered the Rule 144a market with its 11th asset-backed security (ABS) offering, a $290 million deal that's significantly larger than its previous securitization completed last September and introduces a $14 million, B-rated tranche.
Securitizing litigation and medical receivables, Libra Solutions 2025-1 LLC is split into a $242.5 million tranche rated A, a $33.5 million piece rated BB, and a $14 million B-rated portion, according to Morningstar DBRS.
Libra Solutions sponsored a $121 million ABS deal that closed last September and was led by Academy Securities. It was split into a $109 million tranche rated A and carrying a spread of 240 bps, and a $12 million, BB-rated portion with a spread of 450 bps, according to the ASR database. The tranches priced just under par and carried an average life of 2.88 years.
Founded in 2003, the firm changed its name to Libra Solutions from Oasis Intermediate Holdco in January. Last October, it acquired competitor The Trio Solution and now originates legal funding in 43 states and medical receivables funding int 36 states, Morningstar DBRS said in a July 31 presale report, and the company has partnerships with some of the largest personal injury law firms, medical providers, and physical therapy providers in the U.S.
Its litigation affiliates advance funds to plaintiffs pursuing legal claims in anticipation of future settlements, providing Libra with compensation depending on the outcome of the litigation. Through its Key Health business line, Libra purchases medical accounts and receivables from medical providers in the personal injury sector.
"As of March 2025, Libra had originated, in aggregate, approximately $3.27 billion in receivables including $1.68 billion of litigation advances and loans and $1.59 billion of medical receivable purchases," according to Morningstar DBRS.
In its analysis of the Libra deal's collateral credit quality, the rating agency said 52.91% of the pool's receivables constitute medical receivables, for which it typically has received a higher multiple of original advance compared to litigation receivables, although the former's collections have been more variable.
