A pool of consumer loans will secure $300 million in asset-backed securities to be sold to investors through the Mariner Finance Issuance Trust, series 2024-A.
Mariner Finance, the deal sponsor, is a leading branch-installment lender that will also administer, and service the transaction's receivables, according to a pre-sale report from DBRS Morningstar. The deal will issue A, B, C, D and E classes of notes through five tranches, DBRS said.
The notes will repay investors sequentially, according to another rating agency that assessed the notes, Kroll Bond Rating Agency. Subordination, overcollateralization, initially 10.5% of the total principal balance, and a reserve account equaling about 0.50%, and about 15.49% in excess spread provide credit enhancement to the notes. Initial credit enhancement equals 43.5% on the class A notes; and 32.5%, 26.5%, 19.5% and 11.0% on classes B, C, D and E, respectively, it said.
Yields on the notes, which are all expected to price at par, are expected to range from 5.1% on the AAA-rated class A notes, to 9.2% on the notes rated BB- (S&P Global Markets) and BB (DBRS), according to Asset Securitization Report's deal database. Also, all notes are benchmarked to the three-month interpolated yield curve.
KBRA finds that all the notes have a Sept. 22, 2036 legal final maturity date, and it assigned ratings to just one tranche, that being AAA to the class A notes.
Known as MFIT 2024-A, the transaction includes a three-year revolving period, when collection proceeds can be used to purchase new assets. The revolving period can be terminated in an Early Amortization Event, but it can also be reinstated, KBRA said.
BMO Capital Markets,
DBRS assigns AAA to the class A notes; AA to the class B notes; A to the class C notes; BBB to the class D notes and BB to the class E notes.
