The single-A rated notes issued under Social Finace's Professional Loan Program 2013-A are being talked in the 220 to 230 basis points range, a source familiar with the deal confirmed.
SoFi, as the firm is known, is a nonbank lender whose borrowers are either enrolled in, or have graduated, from business, law, medical and other professional schools.
SoFi’s deal is backed by loans originated through its “refinance” and “in-school” loan programs. The borrowers that are included in the securitized pool have already obtained employment; have a weighted average borrower income of $124,000 and have unblemished credit scores with FICOs of 753, explained Fanlo.
Along with single-A rated notes the structure will also issue $20 million in equity, which is being placed with SoFi's alumni investors (these investors provide financing for student loans under the issuer's peer-to-peer lending model).
Over 90% of the borrowers in the loan pool of the issuer’s first deal are in full repayment compared to a traditional private student loan deal, which has approximately 30% of the securitized loans in full repayment.