Acacia Asset Management is rolling revenue from a portfolio of 41,752 property tax lien assets into securitization bonds, raising $235.7 million from the capital markets.
Assets from municipalities within 13 jurisdictions will collateralize the notes, with Florida, Maryland and New Jersey accounting for 75.9%, 10.4% and 5.1% of the pool, according to Kroll Bond Rating Agency.
The deal—partially prefunded with a $23.6 million account--will sell notes through two tranches of class A and B notes, and they all have the same legal final maturity date, July 2041.
KBRA reports advance rates of 93.2% and 94.2% on the class A and class B notes, respectively.
The Additional Tax Lien Account is Acacia 2026-1's prefunding account, which will buy assets in the deal's first six months, up to $33.5 million, and is one of the deal's two investment accounts, KBRA said. The Subsequent Tax Lien Account, the second investment account, will initially be funded with $1 million at closing and is replenished over time up to a maximum of $20.1 million through the priority of payments.
Overcollateralization, a cash reserve account, and a working capital reserve account boost credit to the notes, according to KBRA.
Acacia 2026-1 will pay senior expenses, class A note interest, class B note interest, then deposits to the additional tax lien account and then the subsequent tax lien account, the rating agency said.
Principal to the notes follows on a pro rata basis, to avoid leakage to equity, KBRA said.
Capital One Securities is the initial note purchaser, KBRA said.
AMG will service the notes, while TaxServ is on the deal as back-up servicer.
KBRA assigns AAA and A to the classes A and B, respectively.
