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Conn's prices securitization deal

Texas-based consumer goods and related services company Conn's Inc. said Dec. 13 that it agreed to securitize $669.3 million of consumer receivables.

The transaction involves the issuance of $361.4 million aggregate principal amount of class A asset-backed notes, $132.2 million aggregate principal amount of class B asset-backed notes and $78.6 million aggregate principal amount of class C asset-backed fixed rate notes.

The face amount of the notes to be issued is $572.2 million, with an advance rate of 85.5% of the outstanding customer receivables portfolio balance. The coupon rate to investors is 2.73% on the class A notes, 4.52% on the class B notes and 5.95% on the class C notes.

Further, the all-in cost of funds of the notes is 5.43%, which is a 74-basis-point improvement over the 6.17% all-in cost of funds for the class A, class B and class C notes issued in Conn's April 2017 securitization transaction. The transaction reflects the company's lowest all-in cost of funds for a securitization transaction since Conn's re-entered the securitization market in 2015.

The company expects the transaction to close on or around Dec. 20.