UCC Capital Corp. plans to price the first-ever revolving term securitization backed by licensing fee revenues from a variety of intellectual property assets. UCC Capital will act as issuer, underwriter and servicer for the proposed offering, which is expected to price within the next 30 to 45 days.
Totaling roughly $200 million, the offering will initially be backed by two different I.P. revenue streams but the revolving structure allows UCC to add new cashflows to the transaction over time, according to UCC Capital founder and CEO Bob D'Loren. Each added revenue stream will further diversify the pool and increase credit enhancement, D'Loren added. UCC Capital plans to cap the number of revenue streams at "seven-to-eight trademarks," noted D'Loren, due to decreasing marginal returns of servicing a perpetually growing trademark portfolio.