This week we examine a deal struck by Sixth Street to buy Upgrade Inc. consumer loans through a Goldman Sachs structure that puts the bank in the middle as purchaser, reseller, and lender. That’s followed by a weekly table of other fund financing agreements.
Goldman wears several hats in the Sixth Street deal, disclosed last month in a public financing statement. Here’s how it works:
Goldman Sachs Bank USA is buying consumer loans from Upgrade under an August 26 master sale agreement.
Goldman then resells the loans to the Eaglecrest Investment Trust, a special purpose vehicle set up by Sixth Street earlier this year.
The Eaglecrest trust finances the purchases with a credit line from a lending group.
Goldman is the administrative agent for the credit line and one of the lenders.