Mariner Prepares $ 325 Million Consumer Loan ABS Deal

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A second consumer loan will secure the Mariner Finance Issuance Trust 2021-B, as the trust issues $ 325 million in asset-backed securities (ABS), having previously issued six public transactions and one private securitization since 2017.

Mariner Finance, a subsidiary of MF Raven Holdings, Inc., sponsors the agreement, which is secured by secured and unsecured, fixed rate and non-revolving personal loans that Mariner had initiated through a network of approximately 484 branches in 25 States, according to the Kroll Bond rating agency.

Over time, MFIT securitizations have grown in dollar volume, valuing tighter spreads and benefiting from greater subordination. With five ticket classes, including three senior, MFIT 2021-B is one of the biggest issues on the platform since MFIT 2017-A, according to Finsight.

Closing is scheduled for November 4, and senior “AAA” ratings are expected to be valued at around 77 basis points against swaps, compared to the 90 basis point spread of “AAA” ratings. achieved from the MFIT 2021-A series, according to Finsight.

It is also the tightest price senior bonds have seen since the MFIT 2017-A deal, which stood at 200 basis points against swaps, in a deal with just three slices.

Wells Fargo Securities is responsible for structuring the deal, taking over that role for the first time since November 2018, with BMO Capital Markets and Goldman Sachs Group acting as joint stewards, according to Finsight.

According to KBRA, Wells Fargo Bank plays several key roles in the agreement, including that of Trustee, Backup Manager, Depositor Loan Administrator, Note Registrar and Issuer Loan Administrator. , according to KBRA.

S&P Global Ratings notes that Class A, B, C, D and E Notes will benefit from 61.3%, 53.7%, 48.8%, 43.0% and 35.5% credit support , respectively, in the form of subordination, overcollateralisation, reserve account and excess spread. The rating agency set its worst-case weighted average benchmark loss assumption at 20.8%.

The COVID-19 pandemic has prompted Mariner to tighten its underwriting and enhanced maintenance procedures, S&P said. Mariner cut loans to inferior new borrowers and also reduced advances to this cohort.

During the COVID-19 economic recession, Mariner introduced new, reduced payment deferral options for borrowers who had been negatively impacted. Deferral levels peaked in April 2020 and have since fallen back to historic levels, S&P said.

KBRA and S&P plan to assign “AAA” ratings to the $ 206 million Class A Notes, through “BB-” to the $ 35.5 million Class E Notes.


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