March 2013 - Bostonia Structures and Executes a Secondary Market Sale of Consumer Energy Loans for the Pennsylvania Treasury Department
Bostonia Partners provided investment banking services to the Pennsylvania Treasury Department (“Treasury”) to structure and execute a secondary market transaction for Treasury’s investment in consumer energy loans to allow Treasury to continue to invest in new loans across the Commonwealth of Pennsylvania. The transaction closed on January 31, 2013 with a group of banks led by Fox Chase Bank, headquartered in Hatboro, Pennsylvania.
The Keystone Home Energy Loan Program (“Keystone HELP”) is an investment of the Pennsylvania Treasury Department that provides low interest rate consumer loans for Energy Star and other energy savings home improvements to borrowers for their one or two unit primary residences.
AFC First Financial Corp. ("AFC First"), headquartered in Allentown, Pennsylvania is the originator, underwriter, administrator and servicer of Keystone HELP loans. AFC First is one of the three Fannie Mae approved energy lenders in the nation and the Keystone HELP loans are underwritten to Fannie Mae underwriting standards for consumer energy improvement loans.
Keystone HELP has been a great success with 10,000 loans totaling over $75 million funded to date. Keystone HELP has achieved statewide reach with loans made in all of Pennsylvania’s counties, utilizing a network of more than 1,600 AFC First/Keystone HELP approved contractors who complete the energy cost-saving measures.
The transaction involved the sale by the Treasury of a pool of more than 4,600 consumer loans with anticipated cash flows through their maturity aggregating more than $ $35,500,000 to a limited liability company, Bostonia-Keystone HELP I LLC, a special purpose corporation owned and managed by Bostonia Partners. The loan pool held by Bostonia-Keystone HELP I LLC supports a $20,000,000 senior secured seven-year term loan from Fox Chase Bank as agent for itself and two other community bank lenders, with Treasury retaining a residual interest in the loan pool in addition to its cash sale proceeds received at closing. AFC First will act as servicer for Bostonia-Keystone HELP I LLC.
For additional information on Pennsylvania Keystone Help, please visit www.keystonehelp.com.