Nelnet is preparing its fourth securitization of federally guaranteed student loans of the year, according to rating agency reports.
Citigroup is the lead underwriter.
The $453 million deal consists of a $440 million senior tranche provisionally rated ‘AAA’ by Fitch Ratings and Moody’s Investors Service; and a $13 million subordinated tranche rated ‘A+’/A3.
The trust collateral consists of 100% Federal Family Education Loan Program (FFELP) loans, which are 97% guaranteed by the U.S. Department of Education; 24.8% of the loans are rehabilitated.
Nelnet will service 52.04% of the portfolio, while Xerox Education Services will service 17.49%, Pennsylvania Higher Education Assistance Agency will service 15.96%, and Great Lakes Educational Loan Services will service 14.51%.
The top five states account for 42.2% of the pool, according to Fitch’s presale report.
