The Pennsylvania Higher Education Assistance Agency (PHEAA) is prepping a $583 million securitization of Federal Family Education Loan Program (FFELP) loans, according to Standard & Poor’s.
RBC Capital Markets and Credit Suisse are the co-leads.
S&P has assigned a ‘AA+’ rating to the deal, PHEAA Student Loan Trust 2013-1, which consists of a single tranche of notes.
The pool of collateral comprises approximately 91.4% consolidation loans, 6.7% Stafford loans, and 1.1% Parent Loan for Undergraduate Students (PLUS) and SLS (Supplemental Loans to Students) loans, all of which are at least 97% guaranteed by the U.S. government. The pool also includes 0.8% of loans made under the federal Health Education Assistance Loan (HEAL) program, which are 98% government guaranteed, according to S&P.
The PHEAA will service the loans day-to-day.
The deal is expected to close June 12.