Success Stories
DealVector keeps good company. Leading financial institutions are embracing our revolutionary approach to improving market transparency.
Successful Consent Achieved; Prices Rebound
Navient, the nation’s largest ABS Issuer, needed to amend the indentures on 80 trusts in order to extend the legal & final maturity date. This required consent from 100% of holders—an exceptionally high bar.
In 2016, Moody’s and Fitch placed nearly 40% of all FFELP ABS bonds on downgrade watch. The concern: slow repayment rates by students might cause bonds to miss their legal final maturity dates, despite carrying a government guarantee. The solution: amend the indentures to extend the maturity dates. The problem: amending indentures requires 100% noteholder consent.
Navient, the #1 FFELP ABS issuer, engaged DealVector to make this happen. We created a Navient-branded InvestorLink website and ran an aggressive outreach campaign to investors, quickly registering over $70B in assets. This enabled Navient to explain the logic of the extension to their holder base, and proactively address questions in advance of the vote.
DealVector then delivered consent forms directly to registered investors (up to 10 days faster than DTC), provided investors with online voting option to improve response, tabulated the results, and identified specific custodians who had not yet returned ballots.
The result: Navient has successfully amended over $8B in trusts to date, helping protect the rating of the underlying bonds.
High Approval Rate
Navient successfully amended 70-80% of bonds attempted on the first pass—an exceptionally high pass rate given the 100% approval threshold.
Increased Investor Satisfaction
DealVector enabled investors to anonymously raise questions and influence maturity date decisions, as well as receive consent materials more rapidly and complete online.
Streamlined Administration
Online vote tabulation and comparison of votes-received against investor holdings saved time and increased efficiency.
Improved Pricing
Asset Backed Alert attributed this success as improving pricing on a newly issued deal by 5 to 15 bps vs. guidance, a savings of almost $400k.
Debt Restructuring Saves Bank
Broadway Federal gains the votes to extend the maturity date or face default using MessengerPro and InvestorLink.
Broadway Federal issued a TruPS note that was bundled into a CDO. They needed approval from 2/3 of the controlling class to extend the maturity date or face default. Only a short window existed to locate the investors, answer questions and gain the votes required.
Using MessengerPro, they distributed their proposal directly to investors registered on our platform, and opened a dialogue. They also utilized InvestorLink’s document repository to allow investors to access files, and DealVector’s outbound communication tools to reach investors not yet registered on DealVector.
Speed was essential: one investor noted “receiving the proposal two days sooner than from our Custodian, gave us time to run analysis and be better prepared to vote.”
The result: Broadway achieved the first ever successful restructuring of a TruPS CDO asset outside of bankruptcy. CEO Wayne Bradshaw notes, “While we also worked with the Trustee, we believe DealVector allowed us to deliver the proposal more quickly and provided an identity-protected communication link between our investors and us. This was instrumental in gaining the approval we needed in a very short time frame.”
Threshold Met
Connected directly with investors via platform messaging or proactive outreach, exceeding the 2/3 minimum required for approval.
Deadline Achieved
More rapid distribution of materials directly to decision makers increased response rates and contributed to favorable vote.
Successful Restructuring
All previous TruPS CDO restructurings involved bankruptcy, costing both borrower and investor money. The negotiated outcome preserved value for all parties.
Successful Redemption of CLO by Equity Investor
Napier Park Global Capital finds majority of equity investors required to redeem CLO by using DealVector.
All equity investors must determine the optimal time to redeem a CLO. The analysis is relatively straight forward, the difficulty comes in locating a majority of equity holders to exercise their redemption rights. Missing the optimum window to call a deal can be costly.
Napier Park Global Capital, a global alternative asset management platform, was looking to reach other equity investors to discuss the redemption of the Fairway Loan Funding. DealVector’s Premium Membership, Custom Research services put Napier Park in touch with two other investors with enough votes to redeem the deal.
“Failure to call deals on time can cause one to miss an initially expected return target. When it came time to call the Fairway Loan Funding deal, using DealVector we were able to get in touch with the other investors to form the majority in less than a week,” said Serhan Secmen, Managing Director.
Extensive Time Savings
One message on DealVector rather than weeks of calling.
Identity-Protected Communication
Allowed investors to first indicate interest, begin discussion, verify ownership, and then reveal identity.
Custom Research Services
“By enlisting the help of DealVector’s research services, my team was relieved of the burden of locating holders thereby saving us valuable time and money,” said Serhan.
