A pool of unsecured consumer loans will secure a $245 million securitization from the ACHV ABS Trust 2023-1PL. Series B is a series of Freedom Consumer Credit Fund, itself an affiliate of Freedom Financial Asset Management (FFAM).
Credit Suisse is a manager on the deal, along with Jefferies & Company, SunTrust Humphrey Capital Markets, according to the Asset Securitization Report database.
Cross River Bank and Pathward, National Association are partners banks on the deal, and they originated all of the loans in the collateral pool. The FCCF Warehouse Trust 2018-1, FCCF Funding Trust 2018-1, Nelnet Loan Seller and CS Loan Seller, meanwhile, are among the facilities selling loans to the collateral pool, according to a pre-sale report from Morningstar | DBRS.
The notes in the ACHV ABS Trust 2023-1PL are collateralized by fixed-rate, unsecured consumer loans that full amortize over set maturity terms. Some 15,788 loans are in the current deal, and all are from the Achieve Personal Loan Program are included in the current deal, according to DBRS.
DBRS expects to assign a 'AAA' rating to the $96.7 million, class A notes; a 'AA' rating to the $68.1 million, class B certificate and 'A' to the $29.4 million to the class C notes.
Kroll Bond Rating Agency also expects to assign 'AAA' ratings to the senior notes. The rest of the notes are expected to garner ratings of 'AA-' on the class B notes; 'A-' on the class C notes and 'BBB-' on the class D notes.
The notes are expected to see spreads of 170 basis points on the class A notes through 475 bps on the class D notes.
On average, the loans have a current size of $18,943, according to DBRS. On a weighted average basis, the loans have an original term of 50 months, an original FICO score of 695, and an APR of 21.88%.
For credit enhancement, ACHV ABS Trust 2023-1PL relies on a reserve fund and overcollateralization.
As of the Dec. 31, 2022 cutoff date, the reserve fund was unfunded, but it has a target balance of 1.00% of the pool balance as of the end of the most recent collection period. The reserve fund also has a floor of 0.25%, according to the rating agency.
Initially, the deal has overcollateralization equal to 18.15%, as of the cutoff date pool balance.
