Pagaya $500M unsecured consumer R loan ABS premarketing

Pagaya $500M unsecured consumer R loan ABS premarketing

Pagaya Technologies Ltd. (NASDAQ: PGY) has announced the premarketing of a $500M unsecured consumer loan ABS (Asset-Backed Securities) transaction. The company, known for its AI-driven financial solutions, has been expanding its product offerings and partnerships in the lending sector.

The transaction, dubbed PAID 2025-6, is an unsecured consumer loan ABS with initial hard credit enhancement levels ranging from 82.04% for Class A-1 Notes to 1.46% for Class F Notes. The credit enhancement includes overcollateralization, subordination, a cash reserve account funded at closing, and excess spread. The deal is fully prefunded, with no collateral funded at closing.

Pagaya Structured Products LLC, a fully owned subsidiary of Pagaya US Holding Company LLC, is the sponsor and administrator of the transaction. The company has previously sponsored 48 publicly rated securitizations, showcasing its expertise in the ABS market.

The ratings for the transaction were assigned by KBRA, which applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology. The ratings reflect Pagaya's historical performance, operational reviews, and periodic update calls with the company and platform sellers.

This latest announcement follows a series of successful funding deals and expansions for Pagaya, including its recent $500M 8.875% Senior Unsecured Notes Offering and various ABS transactions. The company has been demonstrating strong operational improvements and profitability, which has supported its recent stock rally.

References:
[1] https://www.morningstar.com/news/business-wire/20250904037236/kbra-assigns-preliminary-ratings-to-pagaya-ai-debt-grantor-trust-2025-6-and-pagaya-ai-debt-trust-2025-6
[2] https://stockanalysis.com/stocks/pgy/