Springleaf Finance is marketing its first consumer loan securitization of the year, according to a presale report issued by Kroll Bond Rating Agency.
The trust, Springleaf Funding Trust 2014-A, will issue four tranches of notes maturing in December 2011, for a total of $367.6 million: Kroll has assigned a preliminary AA’ rating to the $310.4 million class A notes; a preliminary A’ rating to $24.8 million of class B notes; a preliminary BBB’ rating to $12.0 million class of class C notes; and a preliminary BB’ rating to $20.4 million of class D notes.
The transaction includes a two year revolving period during which additional collateral may be funded in the transaction so long as it complies with eligibility criteria.
Springleaf issued three consumer loan securitizations in 2013 and has issued seven mortgage loan securitizations since 2011. However this is the first term ABS securitization that Kroll has rated.
Compared with the two prior consumer loan deals, the initial collateral pool backing the latest transaction has a slightly larger average loan size and slightly lower weighted average coupon. Also, a larger portion of the initial pool backing the latest deal consists of unsecured loans.