SoFi Lending Corp. is marketing another $536 million of securities backed by private student loans.
SoFi Professional Loan Program 2015-D LLC will issue three tranches of notes backed by a trust certificate representing 100% of the beneficial ownership interest in a grantor trust holding loans originated through SoFi’s private student loan program. The $154 million variable-rate class A-1 notes will be primarily secured by a group of variable-rate loans. The $334.8 million fixed-rate class A-2 notes will be primarily secured by a group of fixed-rate loans. Both tranches are provisionally rated ‘AAA’ by DBRS and have a final maturity of October 2036.
There is also $46.7 million tranche of class B notes rated ‘BBB(high)’ that is secured by both the variable-rate and fixed-rate loans. It has a final maturity of October 2037.
The trust will also issue an unrated tranche of class R certificates.
The underlying collateral consists of loans primarily to graduate and undergraduate students, to refinance their outstanding educational loans.
Excess spread will be used to turbo class A Note principal after the July 2016 payment date if the transaction’s overcollateralization targets have not been met or upon the occurrence and continuation of a subordinate lockout.
The Higher Education Loan Authority of the State of Missouri is the servicer.
In its presale report, DBRS cited the high-quality attributes of the borrowers in the collateral pool.. The portfolio contains a weighted average credit score of 773. Additionally, the student loans have a weighted-average borrower income of $147,674 and a weighted-average monthly borrower free cash flow after expenses of $6,264.
SoFi has a limited operating history – this is its seventh securitization. As of September 30, 2015, it had originated approximately $3.6 billion in refinancing student loans to approximately 45,000 different borrowers, and only 21 had ever been 60 or more days delinquent. From inception through that date, SoFi had charged off only $644,546 of its loans.