MRU Holdings Announces Pricing of $140 MM Private Student Loan Securitization Transaction
03 Julho 2008 - 12:35PM
PR Newswire (US)
Company's Landmark Securitization Reopens Private Student Loan ABS
Market NEW YORK, July 3 /PRNewswire-FirstCall/ -- MRU Holdings,
Inc. (NASDAQ:UNCL), a specialty finance company that provides
private student loans through its consumer brand MyRichUncle(R) and
its relationships with private label partners, today announced that
it had priced $140 million of asset-backed securities, backed by
its private student loan portfolio. The securitization will be
composed of high quality direct-to-consumer private student loans
that MRU originated, primarily in 2007 and early 2008, utilizing
its proprietary underwriting criteria, which overlays on top of
traditional credit metrics, a deeper analysis of the future income
prospects and repayment capability of the borrower. The Company
believes that this significantly differentiates its loan portfolio
from that of its competitors. "This is a landmark transaction for
the Company. Our ability to execute this transaction demonstrates
that our market-leading underwriting platform generates loans which
have not only superior performance relative to its competitors but
also superior marketability to ABS investors. The goal of this
transaction was to establish market access and demonstrate the
resilience of the Company's business model in spite of what can
only be called a period of unprecedented market dislocation," said
Vishal Garg, Co-founder and Co-President of MRU Holdings, Inc. "In
this transaction, we have priced AAA's, AA's, A's, BBB's, and an
unrated tranche. The ability to attract investors for the junior
tranches of our securitization speaks affirmatively about the
quality of the Company's private student loan portfolio," added
Jonathan Coblentz, CFO of MRU Holdings, Inc. After funding
liquidity and credit reserve, the transaction will finance $125.5
million of the Company's private student loans, $96.5 million of
which will be transferred to the trust at closing, with the
remainder being transferred during a prefunding period. The
transaction is scheduled to settle on July 10, 2008 subject to
customary closing conditions. "This securitization is another step
in the Company's continued growth and affirms to parents and
students that MRU will continue to honor its commitment to provide
them with the best information and options on paying for college
throughout these turbulent economic times," added Raza Khan,
Co-Founder and Co-President of MRU Holdings, Inc. The Company
expects to provide a detailed investor update via a presentation on
Monday July 7th that will cover the expected economics to the
Company of the transaction, as well as provide guidance on the
expected economics of the Company's originations on a go forward
basis. The asset-backed securities referred to in this announcement
have not been and will not be registered under the U.S. Securities
Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration requirements. About MRU Holdings, Inc. MRU Holdings,
Inc. (NASDAQ:UNCL) is a publicly traded specialty finance company
that provides students with funds for higher education using a
blend of current market credit practices as well as its own
proprietary analytic models and decision tools. The Company has a
renowned brand name "MyRichUncle(R)" and highly scalable
origination infrastructure. The Company utilizes these assets to
provide private student loans to students. MRU distinguishes itself
from the competition as it does not take a "one-size fits all"
approach to designing student loan products, allowing itself and
its marketing partners to create a student loan offering that
directly addresses their specific customer needs. Additional
information concerning MRU Holdings is available at
http://www.mruholdings.com/. About MyRichUncle From its inception
in 2000, MyRichUncle has been at the forefront of innovation for
education finance, most recently focusing on the growth market of
student loans. Since the launch of its student loan program in the
summer of 2005, MyRichUncle has originated over $450 million in
student loans using its breakthrough underwriting platforms and
innovative technology to deliver competitively priced products and
services to borrowers. In May 2006, the Company launched
Preprime(TM), the first and only student loan that allows students
to qualify for loans based on individual merit, rather than credit
history alone. Dedicated to reshaping the student loan industry to
function in the best interests of the students, founders Vishal
Garg and Raza Khan and their team are committed to delivering the
most innovative solutions for their customers. The Company and its
founders have been recognized by Fast Company's Fast 50 (2006) and
listed among BusinessWeek.com's Tech's Best Young Entrepreneurs
(2006). For more information, visit http://www.myrichuncle.com/.
Safe Harbor Statement The information provided herein may include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such forward-looking
statements involve risks and uncertainties that, if realized, could
materially impair the Company's results of operations and/or its
financial condition. These forward- looking statements may be
affected by the risks and uncertainties inherent in the educational
finance market and in the Company's business, as disclosed by the
risk factors contained in the Company's annual report on Form
10-KSB for the fiscal year ended June 30, 2007, and subsequent
quarterly reports on Form 10-Q. The Company cautions that certain
important factors may have affected and could in the future affect
the Company's beliefs and expectations, and could cause actual
results to differ materially from those expressed in any
forward-looking statements made by or on behalf of the Company. The
forward-looking statements contained herein are made as of the date
hereof and the Company does not assume any obligation to update or
supplement forward-looking statements that become untrue because of
subsequent events or circumstances. UNCLF DATASOURCE: MRU Holdings,
Inc. CONTACT: Karin Pellmann, Vice President Public Relations of
MRU Holdings, Inc., +1-212-444-7541, Web site:
http://www.mruholdings.com/ http://www.myrichuncle.com/
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