PFS Financing Corp. is in the market with a $300 million premium finance ABS. The deal comprises a Class A worth $288 million and a Class B worth $12 million.
Standard & Poor's has assigned preliminary ratings of 'AAA (sf)' to the Class A notes and 'A (sf)' to the Class B notes. The series 2012-A transaction structure includes a two-year revolving period that ends February 2014, according to an S&P presale report on the deal.
The 2012-A series offering is backed by insurance premium finance loans, which are usually installment loans that have less-than-one-year duration. The loans in these offerings are usually covering a high percentage of the premiums financed, the presale indicated. The collateral is the unearned premium balance that the insurance carrier owes if the underlying policies are canceled.
PFS has a number of outstanding rated term notes and revolving short-term debt. The firm's premium finance loan portfolio is the collateral asset pool that backs this debt.
IPFS Corp., the transaction's originator and servicer, has completed a number of portfolio acquisitions in the past few years, S&P reported. The last two acquisitions were Universal Premium Acceptance Corp. (UPAC) in December 2009 and American Insurance Group Corp.'s property and casualty premium finance subsidiaries in February 2010.
These subsidiaries included AICCO, a Delaware corporation; A.I. Credit Corp., a New Hampshire corporation; AICCO, a California corporation; Imperial Premium Funding, a Delaware corporation; AIG Credit Corp. of Puerto Rico, a Delaware corporation; and A.I. Receivables Transfer Corp., a Delaware corporation. These are together referred to as the AICCO portfolio. IPFS started implementing an integration plan on March 3, 2011, and rebranded itself as Imperial PFS on June 1, 2011, S&P noted in the deal's presale.
Together the sellers have offices at 30 locations in 18 states including Puerto Rico and roughly 532 employees. Over the year ended Oct. 31, 2011, the sellers made over 575,900 loans reaching $6.87 billion.
In other deal news, GE Financial, formerly known as AmeriCredit, is has reportedly priced its auto transaction called AmeriCredit Automobile Receivables (AMCAR) Trust 2012-1 Tuesday afternoon. For full story on the securitization, please click here.
The consumer sector also has two deals in the pike: a $500 million Discover Financial Services credit card transaction slated to price Wednesday and a $547 million Sallie Mae offering that is slated to price late this week, according to a Bloomberg report.
The private credit 144A SLABS deal called SLMA 2012-A might be announced sometime this week, the report stated.