Kirkland Advises Oncourse Home Solutions on First-of-Its-Kind $1.655 Billion Whole Business Securitization
Kirkland & Ellis represented Oncourse Home Solutions (OHS), a leading provider of home infrastructure warranty agreements, on the successful closing of its inaugural $1.655 billion whole business securitization issuance. The transaction, which closed February 13, 2026, is believed to be the largest non-QSR (quick-service restaurant) whole business securitization issuance ever completed. This landmark deal represents the first-ever securitization of home infrastructure warranty agreements, introducing a new asset class to the securitization market. The notes are secured by substantially all of the revenue-generating assets of OHS, including home infrastructure warranty agreements, partnership agreements and contractor agreements related to OHS's home infrastructure warranty business. OHS is a leading nationwide provider of home infrastructure warranty agreements to a highly diverse population of residential consumers across the United States.
The Series 2026-1/2 Term Notes were issued in multiple classes, including $515 million of Series 2026-1 Class A-2 Notes, $685 million of Series 2026-2 Class A-2 Notes, $90 million of Series 2026-1 Class B Notes, and $40 million of Series 2026-2 Class B Notes. The issuance also included (i) a variable funding facility via the $300 million of Series 2026-1 Class A-1-V Notes, which will provide working and growth capital to OHS, and (ii) $25 million of Series 2026-1 Class A-1-L Notes, which will provide additional liquidity support to the noteholders. To optimize distribution, the term notes were offered under both 144A and 4a2 formats. The Class A-2 notes received investment grade ratings from both Moody's and Kroll Bond Rating Agency.
Read the transaction press release
The Kirkland team included structured finance lawyers Evan Berman, Kelly Mellecker, Michael Urschel, Marc Kassis, Jeff Zhou, Margaret O’Connor, Phil Champagne, Aaqib Mahmood, Emma Tall and Suril Patel; tax lawyers Jon Nelsen, Jon Herlin and Weiwei Chen; debt finance lawyer Judah Batist; investment funds ERISA lawyer Joseph Lifsics; and technology & IP transactions lawyer Camilo Mesa.
