Impact Comes to Market with MF MBS

Impact Community Capital has come to market with a $302 million affordable multifamily housing deal. The securitization is backed solely by affordable housing loans. The A-1 portion that priced at 225 basis points over interpolated swaps is worth $235 million while the A-2 tranche that priced at 230 basis points over interpolated swaps was worth $33.9 million. Credit enhancement on the senior tranche is 22.2% and 11% on the junior portion. Tranche A-1 was broadly syndicated while the rest of the deal was retained by the issuer. The issuer, which is owned by a consortium of insurance companies, was formed to create socially responsible investing (SRI) by insurance firms in California's low-income communities. These companies want to demonstrate that they can create SRIs that have good returns. The issuer said it has attracted more than $1 billion of investment commitments to date. The sole book runner on the two-tranche, 144A offering is Barclays Capital.