$224 million transaction receives investment-grade rating from DBRS Morningstar
NEW YORK, Oct. 5, 2023 /PRNewswire-PRWeb/ -- Unlock Technologies (Unlock) a leading home equity investment technology company, and Saluda Grade, a private alternative real estate investment firm, have closed the industry's first rated securitization.
The securitization, Unlock HEA Trust 2023-1, consists of Class A and B notes with ratings of BBB (low) and BB (low) from DBRS Morningstar. DBRS Morningstar finalized its ratings criteria for the home equity agreement (HEA) asset class earlier this year, paving the way for Unlock and this first rated securitization in the industry. It is the first agency to provide a rating for the asset class.
Barclays was sole structuring agent and lead underwriter for the securitization, with Jefferies as joint bookrunner. Texas Capital Securities and Baird participated in the securitization as co-managers.
Unlock HEA Trust 2023-1 was backed entirely by Unlock-originated residential home equity agreements. Unlock also acted as manager for the underlying assets. Saluda Grade served as issuer for the transaction, its third securitization backed by Unlock-originated HEAs. Investors in the rated transaction included a mix of first-time participants and previous investors across insurance companies, mutual funds, credit funds and asset managers.
"A rated securitization is the only way for an asset class to become mainstream," said Ryan Craft, CEO of Saluda Grade. "This is a watershed moment for Unlock, Saluda and the entire industry. A home equity agreement is no longer an esoteric asset class, but a well-constructed consumer finance product that provides measurable value to homeowners and investors alike."
"Unlock's home equity agreement is a purpose-built and inclusive financial solution that helps everyday American homeowners address their financial challenges. It can provide relief to families burdened with excessive debt and opens opportunities to approach retirement, healthcare, childcare and other life costs from a different point of view," said Jim Riccitelli, CEO of Unlock. "Traditional solutions have focused on swapping one kind of debt for another, which keeps the consumer on the debt treadmill. The HEA is not debt, and it's not a debt consolidation product. It's a debt elimination product."
Disclaimer:
This press release is for informational purposes only, and is neither an offer to sell nor the solicitation of an offer to any for 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, a financing option for homeowners who want to access the equity they have built in their homes without taking out a loan.
About Saluda Grade (http://www.saludagrade.com)
Saluda Grade is a synergistic and vertically integrated advisory and asset management platform focused on investments in the alternative non-bank lending sector, real estate debt and equity, and hard-assets sector. Headquartered in New York City, the firm was founded in 2019.
Contact: Michael Micheletti, [email protected], 415-359-6985
SOURCE Unlock Technologies
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