JGWPT Holdings, LLC (“JGWPT”) has completed a $215 million securitization of notes backed by structured settlement and fixed annuity payments.
JGWPT Holdings, LLC is the parent holding company of J.G. Wentworth and Peachtree Settlement Funding. These independent companies are two of the most well-known brands purchasing structured settlement payment streams in exchange for a lump sum of cash. This latest securitization included payment streams purchased by both of these subsidiaries.
This most recently completed $215 million securitization consisted of two issued classes of notes: $183.1 million of Class A notes rated Aaa by Moody’s Investors Service and AAA by DBRS and $17.2 million of Class B notes rated Baa2 by Moody’s Investors Service and A (low) by DBRS and a Residual Class of $13.9 million retained by the issuer.
Barclay’s acted as the sole structuring advisor and joint book-running manager for the transaction. Deutsche Bank acted as a joint book-running manager. Natixis and Jefferies acted as co-managers.
The transaction represents the 34th securitization of structured settlement and fixed annuity payments by JGWPT subsidiaries and their predecessors.
According to JGWPT Chief Investment Officer Stefano Sola, “This deal proved extremely successful from both a placement and a yield perspective for both the issuer and the investors. The final pricing was in line with assets of similar characteristics, while still allowing investors a healthy spread pick-up. In addition, there were several new investors in the transaction, which together with our traditional investors, underline the growing popularity and understanding of this asset class as a conservative and traditional investment opportunity.”
Mr. Sola added that the transaction was announced and priced in the same week, further illustrating the understanding of the asset by investors, the benefits of an established securitization platform and the increase in secondary market liquidity that the bonds can offer.
David Miller, Chief Executive Officer of JGWPT, said, “This transaction was our third this year and our 10th securitization since 2010. We are committed to creating a stable and predictable new issue platform for our investors and believe this last transaction highlights the success of our program.”
About the JGWPT Holdings, LLC Family of Companies
Based in Radnor, PA, with offices in Boynton Beach, FL, JGWPT, through its subsidiaries, is a leading purchaser of deferred payments from illiquid financial assets such as structured settlements and fixed annuities. Since 1992, JGWPT’s subsidiary companies and their predecessors have purchased over $8 billion of future payment obligations from consumers.
For more information about JGWPT Holdings, LLC, visit www.jgwpt.com.