A pool of unsecured consumer loans from sponsor Sunbit Loans will collateralize $200 million in asset-backed securities being offered through the Sunbit Asset Securitization Trust, 2025-1.
This is the first public 144a transaction sponsored by Sunbit, a buy now-pay later lender that offers financing through select brick-and-mortar stores and service verticals, according to Morningstar | DBRS. The underlying pool in this deal will be composed of unsecured consumer installment loan receivables, DBRS said.
Sunbit is servicing the underlying loans, and Nelnet Servicing is on the deal as backup servicer, the rating agency said. TAB Bank, a state-chartered bank in Utah, originated the receivables in the trust
Sunbit series 2025-1 features a 23-month revolving period, during which it will not repay investors any principal. Instead, the principal payments will start during the amortization period that follows, according to the rating agency.
The transaction can buy Eligible Receivables during the revolving period, if the deal can maintain concentration limits and restrict purchases to eligibility criteria, DBRS. The revolving period has other limits—it can stop, and amortization can begin if it trips certain performance triggers, the rating agency said.
For instance, on any monthly payment date if the three-month annualized net loss ratio exceeds 15.0%, the amortization period can begin. The paydown period can also start if, for instance, the three-month average delinquency ratio exceeds 5.00%, on any monthly payment date, DBRS said.
During the amortization period, which starts in July 2027, the deal will repay principal sequentially to noteholders.
The deal will sell the notes through four classes of A, B, C and D notes, which will repay investors sequentially. All the notes have a maturity date of July 15, 2030, the rating agency said.
DBRS assigns AA, A, BBB and BB to the class A, B, C and D notes, respectively, according to Asset Securitization Report's deal database.
