Prosper Marketplace is coming to the securitization market with its inaugural 144A deal, to raise $322.2 million through the Prosper Credit Card 2026-1 Issuer, secured by a pool of payments on general purpose, MasterCard branded credit card accounts.
The sponsor introduced its card product in 2021, offering them to near-prime customers. Through June 30, the transaction's cutoff date, the company had facilitated the origination of 600,000 accounts, with credit lines at account origination ranging from $500 to $3,000, according to Kroll Bond Rating Agency.
For its first securitization PMCC 2026-1 will sell to noteholders through six tranches of notes, classes A through class F, KBRA said. All the notes have a legal final maturity date of July 15, 2036, the rating agency said.
Credit enhancement coverage begins at 67.91% on the AAA-rated, class A notes, KBRA said. Following that, the AA-, A-, BBB-, BB- and B- tranches benefit from credit enhancement levels of 59.69%, 49.64%, 38.86%, 22.90% and 7.51%, respectively, the rating agency said.
The deal structure includes several familiar credit protections, including initial overcollateralization. In this case, OC starts at 6.50% times the sum of the aggregate pool balance and amounts on deposit in the excess funding account, minus a dilution balance, KBRA said.
The deal's sequential payment order confers subordination, and a cash reserve account will be funded with an amount equaling about 1.00% of the aggregate pool balance at closing, the rating agency said.
The securitization includes a revolving period that will end on either the controlled amortization date of Sept. 1, 2028 or if an early amortization event triggers that response. If a controlled amortization date triggers an amortization period, the latter will begin on the October 2028 payment date, KBRA said.
After the revolving period, and if there is no ongoing early amortization event, then the deal will enter a 12-month controlled amortization period, the rating agency said.
In the course of normal business, Prosper Marketplace's credit card accounts have an average credit limit of about $1,460, and the current pool of notes have a credit limit $1,780, the rating agency said.
