Navient Corp. is marketing $664 million of securities backed by private student loans; it's the issuer's second deal since being spun off from Sallie Mae this year.  

Navient plans to market the bonds to European investors and will hold onto 5% of the first loss tranche to comply with European risk retention requirements.

Standard & Poor’s and Moody's Investors Service have assigned preliminary ratings to the deal, Navient Private Education Loan Trust 2014-A.  The capital structure will offer a mix of fixed- and floating-rate notes over four tranches that have been assigned a preliminary ‘AAA’/ 'Aaa' ratings. Also on offer is a fixed-rate, ‘A’/ 'Aa1' rated tranche. 

The class A1 notes are due in May 2022, the class A2 notes are due in February 2029, the class A3 notes are due in October 2031 and the subordinate notes are due in August 2044.

Barclays, JP Morgan and RBC Capital Markets will lead manage the transaction.

The transaction is collateralized by a variety of student loans that include, law, MBA, medical, consolidation, Tuition Answer, "Smart Option" deferred payment, fixed payment, and interest-only payment while in school student loans. Smart Option loans, which are loans that the issuer originated after 2009, make up 50% of the underlying pool. 

The loans have a weighted average FICO score of 739 at the time of the loan application, and 78.9% of the loans are co-signed.

Navient completed a $463 million private student loans deal in July. The deal, Navient Private Education Loan Trust 2014-CT, is collateralized primarily by private career training loans.

Student loan ABS issuance year to date volume is $14.4 billion, with private accounting for $2.3 billion, according to S&P.

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