Transaction demonstrates growing investor confidence in HEA asset class
TEMPE, Ariz., Sept. 30, 2024 /PRNewswire-PRWeb/ -- Unlock Technologies (Unlock), a leading financial technology company, has closed its third rated home equity agreement (HEA) securitization, Unlock HEA Trust 2024-2. The transaction builds upon the momentum of Unlock's previous securitizations, further solidifying the company's position as a leader in the HEA space.
Unlock HEA Trust 2024-2 securitized $198 million HEAs originated and managed by Unlock. The transaction received robust investor demand and was oversubscribed. Notably, the deal achieved 18 unique investors, considered the highest in the industry to date. Seven of the investors were first-time participants in the asset class.
The securitization, which closed on Sept. 26, featured a Morningstar DBRS BBB(sf)-rated $170 million Class A tranche, BBB(low)(sf)-rated $11 million Class B tranche, and BB (sf)-rated $16 million Class C tranche.
Barclays served as structuring lead and joint bookrunner, joined by Jefferies as joint bookrunner and Texas Capital Securities as co-manager. Morgan, Lewis & Bockius LLP provided legal counsel to the transaction's structuring lead and joint bookrunner.
"This third successful rated securitization demonstrates continued improvement in execution and growing investor confidence in Unlock's HEA product and the overall HEA asset class," said Jim Riccitelli, CEO of Unlock. "By providing a reliable and transparent financing option for homeowners, HEAs are becoming valuable tools for consumers and investors alike."
Unlock Technologies recently secured $280 million in funding to accelerate its growth and expand its HEA offerings nationwide. The company plans to introduce new products, enhance its technology platform, and expand its reach to serve more homeowners across the country.
Unlock's HEA offers homeowners a revolutionary way to tap into their home's equity without the need for additional monthly payments or selling their property, according to Riccitelli. Unlock provides cash in exchange for a share of their home's future value, ensuring a flexible, transparent and hassle-free financing solution.
The HEA industry has witnessed significant growth in recent years, fueled by the current economic climate. With record-high home equity values, rising inflation, increasing interest rates and growing personal debt, homeowners are increasingly seeking alternative financing options. "Unlock's HEA product provides a compelling solution that addresses these challenges," said Riccitelli.
"We're thrilled to continue our partnership with Unlock Technologies on this latest rated securitization," said Ryan Craft, CEO of Saluda Grade. "The continued and increased demand for Unlock bonds is a testament to the recognition of this asset class as a growing and permanent fixture in the securitization markets. Saluda Grade remains committed to supporting Unlock's mission of providing innovative financial solutions to homeowners underserved by today's residential finance landscape."
Disclaimer:
This press release is for informational purposes only, and is neither an offer to sell nor the solicitation of an offer to any for any other securities, and shall not constitute an offer, solicitation or sale. Any offers will be made only by means of a private offering memorandum.
Forward-looking statements:
Certain forward-looking statements and information have been obtained from, or are based on or derived from, published and non-published sources and/or prepared by other parties, which in certain cases have not been updated through the date hereof. Such information is based, in part, on assumptions that have not been independently verified. While such information is believed to be reliable for the purpose used above, we cannot guarantee the accuracy of any such information or the reasonableness of any such assumptions. Unless specified, any views reflected are subject to change without notice. Unlock is not under any obligation to update or keep current the information referenced above. Certain information constitutes "forward-looking statements," or statements of opinion or intention, which can be identified by the use of forward-looking terminology such as "may," "can," "will," "would," "should," "seek," "expect," "anticipate," "target," "forecast," "project," "estimate," "potential," "intend," "continue," "plan" or "believe," or the negatives thereof or other variations thereon, or comparable terminology.
About Unlock Technologies (http://www.unlock.com)
Unlock Technologies is a Tempe, Arizona-based financial technology company providing products and services that help consumers solve financial challenges and improve their financial health. The company's flagship product is its home equity agreement (HEA), a financing option for homeowners who want to access the equity they have built in their homes without taking out a loan. To date, Unlock has helped more than 10,000 homeowners in 16 states access their home equity.
About Saluda Grade (http://www.saludagrade.com)
Saluda Grade is an alternative asset manager focused on opportunities in asset-backed finance, real estate debt and equity, and hard asset sectors. Headquartered in New York City, the firm was founded in 2019.
Media Contact
Michael Micheletti, Unlock Technologies, 415-359-6985, [email protected], www.unlock.com
SOURCE Unlock Technologies
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