Securitization

The goal is to "scale property linked finance into a globally recognized asset class capable of unlocking billions in private capital for net zero and climate resilient buildings."

The non-prime collateral pool starts out with 56,336 contracts, and an average balance of $26,041, which could be upsized to 71,695 contracts, with an average balance of $26,034.

Bespoke securitizations have been gaining in popularity as private fund managers look for ways to raise cash amid a slump in dealmaking and fundraising.

Coupons range from 4.17% on the A1 notes, rated P1/A1+ by Moody's and Fitch Ratings, respectively, to 5.38% on the class N notes, which S&P rates BB.

Banks are bracing for hundreds of millions of dollars in losses, while investors who piled into asset-backed bonds sold by the company as recently as June have seen the prices of their securities plunge.

Notes are anticipated to repay in October 2032, with a final maturity date of December 2055.

Loans for hotels and motels, except those that have casinos, account for 19.43% of the pool balance, the largest portion.

Some 63.8% of the assets in the pool are modified loans, and for 92.6% of those loans, the modifications happened more than two years ago.

In Zayo Issuer's payment structure, senior fees are paid first and then interest is paid monthly on all remaining outstanding classes of notes.

TLOT 2025-B has a couple of other credit strengths, including Toyota's experience as a sponsor and servicer, and the underlying loans' strong quality.