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The rating agencies have assigned preliminary ratings to the transaction, which is worth $111 million. The provisional ratings are 'AA+ (sf)' and 'AAAsf', respectively.
The deal's collateral comprises FFELP loans that include 4.67% of rehabilitated or rehab loans with guaranties provided by eligible guarantors and reinsurance from the U.S. Department of Education, Fitch said.
According to S&P, the deal's initial parity is roughly 103.82%. This is defined as the percentage of the trust assets, including the pool balance, the initial reserve fund, and the trust cash, divided by the note principal amount.
Meanwhile, Fitch said that total credit enhancement for the transaction will be from overcollateralization and excess spread.
Liquidity support for the series 2012-1 notes is provided by a $277,500 reserve fund, making up 0.25% of the outstanding notes, funded at closing with note proceeds.
The deal's day-to-day servicing will be provided by Nelnet Servicing for 97.5% of the loans while Great Lakes Educational Loan Services will be servicing the remaining 2.5%. All the servicers on the offering have shown enough servicing capabilities, Fitch reported.
The series 2012-1 notes will be issued according to a discrete trust indenture dated Aug. 1. The deal's proceeds will be mostly for refinancing existing notes in the 1997 indenture, according to Fitch.
