Nelnet is preparing its second student loan securitization of the year, according to ratings agency reports.
Nelnet Student Loan Trust 2013-2 includes a $1.122 billion tranche provisionally rated ‘AAA’/'Aaa' by Fitch Ratings and Moody's Investors Service, and a $34 million tranche provisionally rated ‘A-’/'Aa1'.
Citigroup is the lead underwriter.
The deal is backed by $1.13 billion of Federal Family Education Loan Program (FFELP) loans. The U.S. Department of Education guarantees 97% of the principal and accrued interest. Roughly 25% of these loans have been “rehabilitated,” according to presale reports.
Nelnet will service approximately 74% of the 2013-2 portfolio and Pennsylvania Higher Education Assistance Agency (PHEAA) will service approximately 26%.
Among other risk factors, the pool of borrowers is moderately concentrated in Texas (13.5%), Colorado (12.4%), Florida (10.12%), California (7.17%), and Georgia (5.5%)
In January, Nelnet issued $438 million of student-loan backed notes. The company issued approximately $4.2 billion of student-loan backed notes in 2012 through six deals.