Bank of America Securities is in the market with a $262 million student loan securitization for Higher Education Loan Authority of the State of Missouri. The deal is its first Federal Family Education Loan Program (FFELP) student loan securitization of the year and will be issued from a new master trust dated Oct. 1, 2008 under Series 2008A.
The transaction is structured in two triple-A rated tranches, a $37 million piece and a $225 million piece. Pricing was not immediately available.
The FFELP Stafford and PLUS student loan collateral is guaranteed by eligible guarantors and reinsured for at least 97% of principal and accrued interest by the U.S. Department of Education, according to a presale report from Fitch Ratings.
The trusts initial total assets-to-liabilities ratio, or parity ratio, will be approximately 106.11%, Fitch said. Excess spread can be released from the trust if the parity ratio is at least 112% and the OC is at least $100,000.
The deal is currently set to close on Oct. 23, 2008.