Unlock Technologies and Saluda Grade Announce Close of Second Rated Home Equity Agreement Securitization

$197 million transaction receives investment-grade rating from DBRS Morningstar

NEW YORK, April 5, 2024 /PRNewswire-PRWeb/ -- Unlock Technologies (Unlock) a leading home equity investment technology company, and?Saluda Grade, a private alternative real estate investment firm, have closed its second rated home equity agreement (HEA) securitization. ?

In the securitization, Saluda Grade placed $197 million of notes, with the deal oversubscribed. Unlock HEA Trust 2024-1 consists of Class A and B notes with investment grade ratings of BBB and BBB (low) from DBRS Morningstar. DBRS Morningstar finalized its ratings criteria for HEA asset class in 2023, paving the way for Unlock's, and the HEA industry's, first rated securitization in October 2023. Global Capital Securitization nominated that deal, Unlock HEA Trust 2023-1, for its RMBS Deal of the Year.

Unlock HEA Trust 2024-1 was backed entirely by Unlock-originated residential home equity agreements. Unlock also acts as asset manager for the underlying assets. Saluda Grade served as issuer and sponsor for the transaction, its fourth securitization backed by Unlock-originated HEAs. Investors in the rated transaction included a mix of first-time participants and?previous investors across asset managers, insurance companies and credit funds

Jefferies Financial Group Inc. is the lead underwriter and structuring agent for this securitization, with Barclays Bank PLC serving as joint bookrunner. Texas Capital Bank and Baird participated in the securitization as co-managers.?

"This securitization is an additional confirmation of the strong demand for home equity agreements we are seeing from both consumers and institutional investors," says Jim Riccitelli, CEO of Unlock. "By offering homeowners a simple, no-loan way to access equity built up in their homes, we are providing an attractive alternative path for them to navigate inflation, high interest rates and record levels of debt."

Ryan Craft, CEO of Saluda Grade, echoes the sentiment. "This second rated securitization is further evidence of the home equity agreement becoming a mainstream asset class," he says. "The home equity agreement is taking its place as a strong consumer finance product for both homeowners and investors."

Disclaimer:
This press release is for informational purposes only and is neither an offer to sell nor the solicitation of an offer to any for any other securities, and shall not constitute an offer, solicitation or sale. Any offers will be made only by means of a private offering memorandum.

Forward-looking statements:
Statements in this press release have "forward-looking statements," and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed in such forward-looking statements.

About Unlock Technologies?(http://www.unlock.com)
Founded in 2020, Unlock Technologies is a financial technology company providing products and services that help consumers solve financial challenges and improve their financial health. The company's flagship product is its home equity agreement (HEA), a?financing option for homeowners to access the equity they have built in their homes without taking out a loan.

About?Saluda Grade?(http://www.saludagrade.com)
Saluda Grade?is a synergistic and vertically integrated advisory and asset management platform focused on investments in the alternative non-bank lending sector, real estate debt and equity, and hard-assets sector. Headquartered in?New York City, the firm was founded in 2019.

Contact: Michael Micheletti, [email protected], 415-359-6985

Media Contact

Michael Micheletti, Unlock Technologies, 415-359-6985, [email protected], www.unlock.com

SOURCE Unlock Technologies