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As headline risk grips the digital lending business, one of the sector's leading players has come to market with its latest securitization backed by private student loans.
The $379.7 million SoFi Professional Loan Program 2016-B LLC represents the ninth rated term ABS deal to date for San Francisco-based Social Finance Inc., according to a May 18 DBRS presale report, but it may become the most closely watched given the circumstances.
Shares of LendingClub Corp. plunged by 54.4% during the first 17 days of May as the company confronted a series of negative developments, including the resignation of its CEO. On Deck Capital Inc. shares tumbled 48.2% during the same time frame, reeling from a disappointing earnings report. Bloomberg News reported May 16 that Prosper Marketplace Inc. had met with prospective investors regarding a capital infusion, two weeks after it announced broad-based layoffs.
DBRS assigned provisional ratings of AAA (sf) to each of the $101.4 million in class A-1 notes, $122.7 million in class A-2A notes and $131.5 million of class A-2B notes. Its provisional rating on the $24.1 million tranche of class B notes is A (high) (sf). The deal is backed by a $427 million pool of fixed- and variable-rate refinancing loans extended to borrowers who completed advanced degree programs from select institutions and...