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Barclays Helps Startup Structure First Rated P2P Bond

Barclays Plc and Morgan Stanley are helping a California startup create a bond backed by peer-to-peer student loans in what the firm said would be the first deal of its kind to get a credit rating.

The two banks were hired by Social Finance Inc., a peer-to-peer lender based in San Francisco, to structure and underwrite the transaction, said Chief Financial Officer Saturnino Fanlo. The deal will include $150 million in senior notes rated by Toronto-based DBRS Inc. and may be graded A, the sixth-highest investment-grade level, Fanlo said. The remaining $20 million will be equity, he said.