Springleaf Financial plans to launch its first securitization of personal consumer loans, Asset-Backed Notes Series 2013-A.

Standard & Poor’s has assigned the transaction preliminary ratings. The class A notes are rated ‘A’; the class B notes are rated ‘BBB’; the class C notes are rated ‘BB’ and the class D notes are rated ‘B’.

The ratings agency said in a presale report that it would not rate the issuer’s deal  above 'A '  because despite Springleaf’ efforts to reign in debt, the company remains highly levered with over $12.6 billion in total securitization and long-term debt, including $3.65 billion in unsecured debt maturing in 2017 or later.  

S&P said that Springleaf underwent an expense reduction project to rationalize its cost structure. The company plans to  solely focus on the personal consumer loan business and wind down its legacy business of residential mortgage originations.

The restructuring entailed further branch closures in the first quarter of 2012 as part of a phased withdrawal from 14 states. Operating expenses have been reduced by more than $100 million annually.

Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Credit Suisse Securities, Deutsche Bank Securities, Goldman, Sachs & Co., and RBS Securities are lead managers on the deal that is expected to close on Feb.20.






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