Education Loan Finance Sets Record with $300 Million SecuritizationJune 30, 2020
KNOXVILLE, Tenn., June 30, 2020 /PRNewswire/ — Education Loan Finance (“ELFI”), a division of SouthEast Bank, announces the successful closing of the ELFI Graduate Loan Program 2020-A Asset-Backed Notes, with record-setting pricing on the company’s third securitization of refinanced student loans. ELFI 2020-A financing was a $300 million fixed-rate transaction, comprised of $271.650 million Class A Notes, $18.850 million Class B Notes, and $9.500 million Class C Notes. The Class A Notes were rated AAA by S&P and DBRS. The Class B and C Notes were rated AA and A, respectively, by DBRS.
ELFI achieved a major milestone with the 2020-A transaction by securing the lowest all-in weighted average market yield of all major student loan refinance companies’ publicly issued and offered securitization fixed-rate notes since the inception of the industry in December 2013. ELFI set a record and became the first student loan refinance lender to offer securitization fixed-rated notes at an all-in weighted average yield of less than 2%, at 1.863%, on the ELFI 2020-A fixed-rate offered Notes due to strong investor demand. ELFI’s 2020-A deal was also priced very competitively at an all-in weighted average yield level below those of three major student loan refinance securitizations issued recently by major companies in the student loan refinance market.
“We are incredibly proud of this record-setting achievement, as our investors and the overall securitization market recognize the strength of ELFI’s lending platform, the high credit quality of our loans, as well as our significant expertise in the student loan refinance sector,” said Barbara Thomas, SouthEast Bank’s Chief Operating Officer and Head of the ELFI Division. “The strong performance of our ELFI loans, especially during the COVID-19 crisis, together with the excellence we offer our borrowers in customer service, sets us apart from the competition and garnered broad investor interest in our ELFI platform, including 7 new institutional investors. Our management team’s 30+ years of experience in student lending, coupled with the financial strength of both SouthEast Bank and our parent company, Education Loan Finance, Inc., was also well received by investors.”
BMO Capital Markets and Citigroup served as joint lead book runners on the ELFI 2020-A transaction.
ELFI has been providing low-cost refinancing and consolidation solutions for borrowers with both federal and private student loans since December 2015 and has funded over $1.3 billion of refinanced student loans to over 17,400 borrowers. ELFI’s superior customer service, driven by a process of assigning a highly-trained Personal Loan Advisor to every applicant, has earned ELFI an industry-best 4.9 out of 5 TrustPilot score.
About Education Loan Finance
Education Loan Finance, a division of SouthEast Bank, is a leading online lender committed to funding higher education for students and graduates. ELFI provides competitive products and rates, flexible payment options, a smooth digital experience, and a knowledgeable workforce. Education Loan Finance believes that providing students and parents with in-school funding options and graduates with comprehensive refinancing and consolidation options, students, parents, and graduates are empowered along their financial journey. To learn more, visit www.elfi.com.
About SouthEast Bank
SouthEast Bank operates branches throughout East and Middle Tennessee, blending modern amenities with hometown service and local decision-making. Our customers enjoy convenient electronic and mobile platforms such as online banking, remote deposit, automatic fraud monitoring, and a worldwide ATM network. In the last decade, SouthEast Bank, along with its holding company, has donated over $20 million to support secondary and post-secondary education in our local communities and universities throughout the state of Tennessee. To learn more about SouthEast Bank, please visit southeastbank.com. Member FDIC.
SOURCE Education Loan Finance