The US$800m
Barclays-led deal,
Neighborly Issuer LLC Series 2021-1, follows the successful WBS debut of restoration and cleaning franchiser
ServiceMaster Brands in November and the strong US$510m inaugural ABS from home and commercial services franchisor
ServPro in September 2019.
Neighborly offered a US$800m fixed-rate "A-2" note which comes due in April 2028. Two tranches in the structure are not being offered, according to Kroll - a US$30m variable funding note and US$10m of debt intended to provide liquidity advances. The rating agency is expected to assign BBB- for the three classes.
The offered tranche cleared at a yield of 3.60%, which was inside a guidance of 3.75% and initial price thoughts in the high 3% area. This will lower Neighborly's funding costs by over 250bp on a swaps basis, which is equivalent to US$12m in interest savings per annum, a source familiar with the deal said.