Second securitization for Unlock and Saluda Grade fully backed by Unlock-originated HEA assets
SAN FRANCISCO, Sept. 7, 2022 /PRNewswire-PRWeb/ -- Unlock Technologies Inc. (Unlock), a leading financial technology company, and Saluda Grade, a private alternative real estate investment firm, have closed a securitization backed entirely by residential home equity agreements, issuing $180 million of residential mortgage-backed securities. Unlock is the originator of all home equity agreements (HEAs) in the securitization and plays the role of servicer for the underlying assets.
The transaction was structured with $144 million of unrated Senior Class A securities, $18 million of Mezzanine Class B securities, and $18 million of Mezzanine Class C securities. Jefferies was sole structuring agent and lead underwriter, alongside Barclays as joint bookrunner. Baird participated in the securitization as a co-manager.
The senior debt offering in the securitization was oversubscribed with participation across mutual funds, credit funds, banks and asset managers. All investors in the transaction were first-time participants in securitizations backed entirely by home equity agreements.
Unlock's HEA is an innovative financing option for homeowners who want to access the equity they have built in their homes without taking out a loan. Consumers typically use the funds to pay down debt, make home improvements, boost savings or pay expenses. Unlock is currently operating in 15 states and expects to expand into five more by the end of the year.
"Unlock directly addresses consumers' desire to improve their financial situations by accessing their largest asset, their home equity," says Unlock CEO, Jim Riccitelli. "As the HEA asset class achieves mainstream adoption from traditional financing sources, we will continue to provide creative financing solutions to many thousands of deserving families that cannot qualify for traditional home finance products like HELOCs and cash-out refinance loans. The need for smart ways for consumers to improve their finances, confidence and peace of mind has never been greater."
"This first-time innovative securitization structure creates greater liquidity for HEA issuers and new access for bond investors focused on American home equity," says Saluda Grade CEO Ryan Craft. The uptick in demand from institutional capital brings additional financing and liquidity to the HEA market that will benefit both consumers and investors in the future, he adds. "Our mission is to programmatically issue Unlock securitizations, dramatically increasing available liquidity for the American homeowners who need it most."
Disclaimer:
This press release is for informational purposes only, and is neither an offer to sell nor the solicitation of an offer to any Fund or any other securities, and shall not constitute an offer, solicitation or sale. Any offers will be made only by means of a private offering memorandum.
Forward-looking statements:
Statements in this press release have "forward-looking statements," and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed in such forward-looking statements.
About Unlock Technologies (http://www.unlock.com)
Founded in 2020, Unlock Technologies is a financial technology company providing products and services that help consumers solve financial challenges and improve their financial health. The company's flagship product is its home equity agreement (HEA), a financing option for homeowners who want to access the equity they have built in their homes without taking out a loan. The company maintains hubs in Detroit, New York, Phoenix and San Francisco.
About Saluda Grade (http://www.saludagrade.com)
Saluda Grade is a boutique real estate asset management firm focused on the alternative non-bank lending sector. Headquartered in New York City, the company is driven by a core mission to identify alternative lending sectors needing institutional capital to fuel growth. The firm has deep relationships with both private lenders and capital providers, which allow Saluda Grade to create and deliver attractive assets to institutional investors.
Media Contact
Michael Micheletti, Unlock Technologies, Inc., 415-359-6985, [email protected]
SOURCE Unlock Technologies, Inc.
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