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J.G. Wentworth Completes $265 Million Securitization
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Written by Donald D. Ernst   
Wednesday, 21 December 2011
Specialty finance company J.G. Wentworth has completed a $265 million securitization of payment rights under structured settlement and fixed-annuity purchase contracts. J.G. Wentworth was the first issuer to securitize structured settlement payment streams in the asset-backed markets in 1997. Since then, the company has issued 23 securitizations backed by structured settlement and fixed-annuity receivables totaling nearly $3 billion.

The most recently completed $265 million securitization consisted of two issued classes of notes: $226 million of Class A notes rated Aaa by Moody’s Investors Service and AAA by DBRS and $21 million of Class B notes rated Baa2 by Moody’s Investors Service and A (low) by DBRS and a Residual Class of $18 million which was retained by the Company. UBS Investment Bank and Jefferies & Company acted as co-lead arrangers and UBS Investment Bank as sole bookrunner.

According to J.G. Wentworth Chief Investment Officer Stefano Sola, “This first securitization in 2011 was the largest-to-date in the structured settlement industry. J.G. Wentworth is committed to creating a liquid market for structured settlement and annuity backed notes through the continued access to the capital markets with benchmark deals. Our established securitization program and continued access to the capital markets underlines our commitment to this growing and diversified investor pool by delivering a consistent flow of product.”

Mr. Sola added that the consistent demand from insurance companies and money managers highlights the strength of this asset class within the broader asset backed market. “We structured this transaction with a 25% pre-funding account. The driver behind this decision was the underlying investor appetite and demand for long term access to strong, consistent and predictable cash flows” Mr. Sola said.

Since 2010, J.G. Wentworth has sponsored a total of four capital markets securitizations. According to Chief Executive Officer David Miller, “This latest securitization demonstrates continuous demand from our historical investor base spanning over 14 years coupled with new investors stepping into this space to access a unique product.” Mr. Miller continued, “We are pleased with the execution of our latest securitization. The quick investor turnaround between marketing the deal and pricing highlights the benefits of having an established securitization platform and program that institutional investors recognize. This successful transaction further highlights the continued growth of the company which necessitated the recent move of the company headquarters within the greater Philadelphia region to a larger facility to accommodate both the recent and projected growth of the firm."
Last Updated ( Wednesday, 21 December 2011 )