Prodigy Finance’s $300 Million Student Loan Securitization


Freshfields advised Prodigy Finance Limited on the deal.

The financing was obtained by an Irish special purpose vehicle in two tranches: approximately $250 million on a senior secured basis from the U.S. International Development Finance Corporation (formerly OPIC) and the balance on a junior secured basis by a group of investors identified by Prodigy. The SPV will use the proceeds of the financing on a revolving basis through June 2022 to purchase student loans originated by Prodigy to students from developing countries enrolled in graduate school studies in business and various STEM curricula at select universities located in the United States. The risk retention-compliant financing matures in October 2045, but is expected to amortize well in advance of that date.

Prodigy is a long-standing client of the Freshfields London Global Transactions practice, and the matter was the culmination of approximately two years of work.

Partners and associates in New York who worked on the matter are Brian Rance (Picture), En-Min Chua and Francesca Loreto (all from New York Global Transactions), and Robert Scarborough and Dennis Caracristi (New York Tax). A London team of Chris Barratt, Paul Davidson, Joseph Biesterfield, Katy Foxall, Sarah Murray (on secondment to Prodigy) and Yuen Yuen Tan were integral to handling English and EU law and taxation issues.

Involved fees earner: Chris Barratt – Freshfields Bruckhaus Deringer LLP; Joseph Biesterfield – Freshfields Bruckhaus Deringer LLP; Dennis Caracristi – Freshfields Bruckhaus Deringer LLP; En-Min Chua – Freshfields Bruckhaus Deringer LLP; Paul Davidson – Freshfields Bruckhaus Deringer LLP; Katy Foxall – Freshfields Bruckhaus Deringer LLP; Francesca Loreto – Freshfields Bruckhaus Deringer LLP; Sarah Murray – Freshfields Bruckhaus Deringer LLP; Brian Rance – Freshfields Bruckhaus Deringer LLP; Robert Scarborough – Freshfields Bruckhaus Deringer LLP;

Law Firms: Freshfields Bruckhaus Deringer LLP;

Clients: Prodigy Finance Limited;

Author: Ambrogio Visconti