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Ledn Closes $188 Million Bitcoin-Backed ABS in Market First

S&P’s BBB- preliminary rating reflected safeguards that kept noteholders whole during this month’s selloff.

Overview

  • The bonds were sold in two tranches, with the senior piece pricing around 335 basis points over benchmark and Jefferies serving as sole structuring agent and bookrunner.
  • The pool comprises more than 5,400 short-term consumer loans to 2,914 borrowers, carrying a weighted‑average interest rate of 11.8% and roughly 55–56% loan‑to‑value.
  • At S&P’s presale cutoff the collateral totaled 4,078.87 BTC valued near $356.9 million, versus about $273 million at recent prices.
  • Early‑February volatility triggered automated liquidations on a significant share of loans—executed below an 81.4% LTV threshold—with no principal losses reported.
  • Protections include overcollateralization, early amortization triggers, and a 5% liquidity reserve, setting a template for future Bitcoin‑collateralized securitizations.