Inaugural deal receives A-rating and is backed by Americor Advantage personal loans originated by Credit9.
IRVINE, Calif., Dec. 4, 2023 /PRNewswire-PRWeb/ -- Americor Financial, a leading provider of debt relief solutions, announced today the closing of our first offering of $127.5 million in rated notes backed by Americor Advantage loans.
The securitization, AMCR 2023-1, consists of three classes of rated notes backed by unsecured personal loans. This deal is the first securitization sponsored by Credit9, a lending subsidiary of Americor.
Americor Advantage loans are offered exclusively to members of Americor's debt resolution program and those of certain other legal services providers who have been enrolled for at least six months and have made timely payments into their dedicated accounts during that time.
"Americor Advantage loans help accelerate the debt resolution process for our clients struggling with debt, but have demonstrated both a commitment and ability to resolve their debt," said Americor CEO David Norris. "This inaugural securitization supports Americor's mission of helping individuals get on the path to becoming debt-free and improve their credit score faster than they ever thought possible."
Americor Advantage loans are fully amortizing, unsecured consumer loans with original balances ranging from $2,500-$45,000, original terms of one to five years, and a fixed interest rate of 24.99%. Underwriting for the Americor Advantage loan program is based on proprietary algorithms that evaluate behavioral, transactional, employment and income data, as well as a manual review of borrowers' creditworthiness. The loans are originated by Credit9.
"This securitization was the first step towards becoming a programmatic issuer in the capital markets, providing capital to help our clients accomplish their objectives," commented Americor Chief Financial Officer, Barry Rafferty.
The Class A, Class B, Class C, were rated A (sf), BBB (Low) (sf), BB (Low) (sf), respectively, by DBRS Morningstar. The Class A was rated A- (sf) by KBRA. The Class B and Class C notes were not rated by KBRA. The transaction structure features overcollateralization, subordination, a reserve fund and excess spread.
Jefferies served as Structuring Agent, Initial Purchaser and Sole Bookrunner.
This press release is for informational purposes only and is neither an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended ("Securities Act"), or the securities laws of any jurisdiction. The notes were offered and sold only to qualified institutional buyers in reliance on Rule 144A under the Securities Act.
Americor is a next-generation Finance Technology (FinTech) company that uses a proprietary online platform designed to provide debt relief to its clients, allowing them to restructure their unsecured debt payments, pay only a fraction of the debt they owe, and become debt-free faster than they ever thought was possible. To learn more about Americor and how it helps its clients become debt-free, visit their website at americor.com.
Yehuda Metieles, Americor, 1 866-333-8686, [email protected], americor.com