Springleaf plans to issue its third subprime RMBS of the 2013. The latest deal is sized at $344.2 million, according to a Standard & Poor’s presale report.
The deal will offer a $186 million senior tranche and a number of subordinate and mezzanine tranches. The expected closing date is Oct. 9.
The collateral backing the notes consists of seasoned first-lien, fixed- and adjustable-rate residential mortgage loans secured by one- to four-family residences, condominiums, manufactured housing, land, planned unit developments, mixed use properties, and packages of multiple real properties to subprime borrowers, according to the presale report.
The deal is similar to the issuer’s two previous transactions and the 2012 vintage series. However S&P notes that the 2013-3 transaction includes loans that have had 30-day delinquency in the past 12 months.
“While the majority of the loans selected for inclusion have been current for 12 months, they have been selected from a general subprime mortgage loans population that we expect to have significant delinquencies,” said S&P.
The top three originators of the loans included in the pool are American General (71%), Wilmington Finance (15%), and Equity One Co. (6.6%).
Merrill Lynch, Pierce, Fenner & Smith, Credit Suisse Securities, RBS Securities and Citigroup are the underwriters on the deal.