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The A1 class is broken down into three AAA-rated tranches, made up of initial exchangeable notes that can be exchanged for the exchangeable notes.
The deal continues BHG's more recent streak of securitizing loans collateralized exclusively by consumer loans. The deal is the program's sixth term 144A securitization backed by consumer loans.
Classes A1 through A3, which is composed of seven tranches, are expected to pay coupons of 6.39%.
The company expects to report net income between $205 million and $220 million, with positive servicing results offset by an originations miss, analysts said.
A new cohort of lenders, Dort Financial Credit Union, Gesa Credit Union and Liberty Federal Credit Union originated the loans and contributed them to the collateral pool.