The single-A rated notes issued under Social Finace's Professional Loan Program 2013-A are being talked in the 220 to 230 basis points range, a source familiar with the deal confirmed.
SoFi, as the firm is known, is a nonbank lender
SoFi’s deal is backed by loans originated through its “refinance” and “in-school” loan programs. The borrowers that are included in the securitized pool have already obtained employment; have a weighted average borrower income of $124,000 and have unblemished credit scores with FICOs of 753, explained Fanlo.
Along with single-A rated notes the structure will also issue $20 million in equity, which is being placed with SoFi's alumni investors (these investors provide financing for student loans under the issuer's peer-to-peer lending model).
Over 90% of the borrowers in the loan pool of the issuer’s first deal are in full repayment compared to a traditional private student loan deal, which has approximately 30% of the securitized loans in full repayment.