MRU Holdings prices $140 million securitization

MRU Holdings Inc., a student lender operating under the name MyRichUncle, said Monday it priced a $140 million asset-backed securitization.

Loans MRU Holdings originated in 2007 and early 2008 were used as collateral for the deal.

Markets for asset-backed securities such as those backed by student loans have shrunk significantly since the middle of 2007 amid deterioration in the credit markets and rising defaults among many types of loans. Investors have shied away from all but the safest types of securities since then, making it difficult for companies like MRU Holdings to securitize pools of loans.

Companies such as MRU Holdings use the securitization market to raise new capital in order to originate new loans to consumers.

Student loan-backed securities volume declined 32 percent through July 3, compared with the year-ago period, according to JPMorgan Chase & Co. About $22.29 billion in student loan-backed securities have been sold through roughly the first half of the year.

Shares of MRU Holdings rose 8 cents, or 3.3 percent, to $2.50 in late morning trading.