GoodLeap Home Improvement Solutions Trust is coming to the capital markets to raise $378 million in asset-backed securities, a deal that will be collateralized by home loans funding sustainability upgrades.
The deal will be GoodLeap's 21st securitization from GoodLeap, a San Francisco, Calif.-based provider of software and financing for sustainability solutions, and issue notes through three tranches of class A, B and C notes. Asset Securitization Report's deal database expects the A, B and C to see yields of 5.4%, 6.4% and 9.1%, respectively.
All of the notes are priced against the three-month, interpolated curve, according to the database.
The notes receive credit enhancement from overcollateralization—initially, it comes in at 7.13%, and the deal has a target of 8.13%, according to ratings analysts from Kroll Bond Rating Agency. There is also an initial reserve representing 0.46% of the pool balance, KBRA said.
The 33,727 loan assets fund sustainability home upgrades, and have an average current loan balance of $12,714, with a weighted average (WA) interest rate of 12.36%, the rating agency said. Also on a WA basis, the loans have a FICO score of 751.
Sustainability home upgrades represents a $450 billion annual market opportunity in the United States, according to a statement from GoodLeap about a previous deal.
As with most securitization deals involving property sustainability improvements, the GoodLeap loan assets are most highly concentrated among three states. This time California, Texas and Florida account for 18.2%, 13.1% and 8.8% of the pool balance respectively.
KBRA assigns A-, BBB and BB- to the A, B and C notes, respectively.
