JGWPT Holdings Completes $204 Million Securitization


Subsidiaries of JGWPT Holdings, LLC have completed a joint $204 million securitization of notes backed by structured settlement and fixed annuity payments.

JGWPT Holdings, LLC is the parent holding company of several consumer finance businesses, most notably J.G. Wentworth Originations and Peachtree Settlement Funding. These two independent originators are two of the most well-known brands that purchase structured settlement payments in exchange for a lump sum of cash. This latest securitization is comprised of payment streams purchased by both of these subsidiaries.

J.G. Wentworth was the first issuer to securitize structured settlement payment streams in the asset-backed markets in 1997. Since then, J.G. Wentworth has issued 24 securitizations backed by structured settlement and fixed-annuity receivables totaling over $3 billion. Peachtree Financial was also an active issuer of asset backed bonds backed by structured settlement payment streams and completed seven securitizations from 2004 to 2010 totaling more than $700 million.

This most recently completed $204 million securitization consisted of two issued classes of notes: $174 million of Class A notes rated Aaa by Moody's Investors Service and AAA by DBRS and $16 million of Class B notes rated Baa2 by Moody's Investors Service BBB by DBRS and a Residual Class of $14 million which was retained by the issuer. Jefferies acted as co-lead arranger and bookrunner and Barclays Capital acted as co-lead arranger.

According to JGWPT Chief Investment Officer Stefano Sola, “This was our first joint securitization of J.G. Wentworth LLC and Peachtree Financial originated product under a single parent holding company. The pricing and demand for the transaction reflects the confidence of institutional investors in the new, joint securitization program.”

He added that, this second asset-backed transaction in 2011 saw continued interest from traditional J.G. Wentworth and Peachtree investors, but also from a number of new institutional investors to this space. Mr. Sola said, “We have continued to broaden our institutional investor base over the years and continue to do so. This is highlighted by the incremental investor interest given current, volatile market conditions.”

Mr. Sola said, “The transaction was completed in a very challenging market environment characterized by uncertainty and volatility, which, we believe, further validates the strength of this asset class within the broader asset backed market.”

David Miller, Chief Executive Officer of JGWPT said, “J.G. Wentworth and Peachtree Financial have completed a total of six asset-backed transactions since the beginning of 2010. We believe this continuity underscores our commitment to continued access to the market and providing institutional investors with a stable flow of bonds backed by structured settlement and annuity payment streams in the future.”

About the JGWPT Holdings, LLC Family of Companies

JGWPT Holdings, LLC, based in Radnor, PA and Boynton Beach FL, through its specialty finance subsidiaries, is a leading buyer 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 $7 billion of future payment obligations from consumers.

For more information about JGWPT Holdings, LLC, visit www.jgwpt.com.


JGWPT Holdings, LLC
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