Mission Lane Credit Card Master Trust has returned to the capital markets to raise $300 million in asset-backed securities, supported by a pool of revenue from its general-purpose Visa credit card program.
The company markets to prospective customers who are either working to build or rebuild their credit, according to Kroll Bond Rating Agency, whose analysts assessed the notes.
Known as MLANE 2024-B, the deal will sell notes to investors through five tranches of class A, B, C, D and E notes. They all have a legal final maturity date of Jan. 15, 2030, and the A, B, C, D and E tranches have initial credit enhancement levels of 28.4%, 20.7%, 12.9%, 6.8% and 3.0%, respectively.
As for ratings, KBRA assigns AA, A, BBB, BB and B+ ratings to the A, B, C, D and E classes, respectively.
Asset Securitization Report's deal database says the notes are priced against the three-month interpolated yield curve, with yields ranging from 5.9% on the AA-rated, class A notes to 6.7% on the BBB-rated class C notes.
There are 2.4 million accounts in the pool, with an average receivables balance of $1,234 and an annual percentage rate of 32.68%, according to KBRA. On a weighted average (WA) basis, the underlying assets have a FICO score of 628.
The capital structure gets credit enhancement from total gross excess spread of 22.38%, according to KBRA. MLANE 2024-B also benefits from initial and target overcollateralization of 3.0%. There is a reserve account, although it is initially 0% at closing. The reserve target will shift between 1%, 2% and 3%, depending on whether the three-month average excess spread falls below certain thresholds, KBRA said.
MLANE 2024-B has a revolving period that ends on Sept. 30, 2026.
