A private student loans will secure $143.9 million in student loan revenue bonds from the New Hampshire Health and Education Facilities Authority, series 2024A and B.
The Series 2024A bonds have a taxable term bond maturing on Nov. 1, 2034 and a taxable bond maturing 10 years later, according to analysts at S&P Global Ratings. The bonds exist with several redemption provisions, including the first maturity date, a special redemption option from excess revenues, and a special mandatory redemption from excess revenues.
RBC Capital Markets is manager on the deal, and the notes receive credit enhancement through a senior-subordinate repayment structure, according to S&P. The rating agency assigns AA to all the notes, which are fixed rate.
Bondholders will receive payments semiannually, starting with payments to the rebate fund, or excess yield fund; then senior transaction fees, interest due on the senior bonds and maturing principal due on the senior bonds and sinking fund payments, followed by the rest of the payment priority.
More than six thousand loans are in the collateral pool, with an outstanding principal balance of $33,169. On a weighted average (WA) basis, the loans have a net interest rate of 7.37%, and remaining repayment term of 153 months. Most of the loans in the pool (71.5%) are in the repayment phase, while in-school loans represent the next highest concentration, with 17.2%.
At least 25.0% of the principal balance of the loans must have FICO score of 740 or higher. Loans that are eligible for refinance can account for no more than 65.0% of the pool, and must have FICO scores higher than 740.
