JGWPT Holdings announced that it has issued, through JGWPT XXXI, $233,943,000 of Fixed Rate Asset Backed Notes.
In a release dated Feb. 19, the Company said the notes will primarily be collateralized by payments from a pool of rights arising under court ordered structured settlement payment purchase contracts, court ordered lottery payment purchase contracts and annuity contracts originated by the J.G. Wentworth and Peachtree Financial Solutions companies.
"This represents the 38th securitization for JGWPT and its predecessors, and like our ABS transactions in 2013, this transaction included lottery receivables, which we will continue to include in future transactions," said Stefano Sola, JGWPT's Executive Vice President and Chief Investment Officer. "The current market volatility surrounding interest rates underlines the attractiveness of our asset class to institutional investors who seek predictable and consistent returns. We saw very strong demand from institutional investors for both classes of our bonds - announcing and pricing this deal within a 72-hour window after starting the pre-marketing process."
"This placement demonstrates the robust demand for our asset- backed program," said David Miller, JGWPT's Chief Executive Officer. "If these market conditions continue, we expect to complete two additional securitizations this year."
The issue consists of two classes of placed notes: $212,167,000 Class A Fixed Rate Asset Backed Notes that will pay 3.96 percent, and $21,776,000 Class B Fixed Rate Asset Backed Notes that will pay 4.94 percent. The notes will be rated AAA (DBRS) and Aaa (Moody's); and BBB (DBRS) and Baa2 (Moody's), respectively.
Barclays was the sole structuring advisor and was joined by Credit Suisse as joint book-running manager. Deutsche Bank Securities and Natixis acted as co-managers.
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