GE Capital is marketing a $750 million dealer floorplan master note trust securtization that will be rated by both Moody's Investors Service and Fitch Ratings.
The deal called GE Floorplan Master Note Trust Series 2012-2 (GE DFMNT 2012-2) is backed by assets that consist of an undivided interest in a pool of diversified revolving DFP receivables that were originated by GE Commercial.
Distribution Finance and other originators provide wholesale financing to U.S. dealers that are secured by the products financed.
GE DFMNT is backed by products from roughly 13 different product lines, including marine, recreational vehicles, motor sports, power sports, consumer electronics and appliances and transportation. GE DFMNT is serviced byGeneral Electric Capital Corp.
Moody's and Fitch have assigned provisional ratings of 'Aaa'/'AAA' to the class A notes; 'Aa2'/'A' to the class B notes and 'A2'/'BBB' to the class C notes.In a report, Moody's said that its ratings are based on several factors, including the quality of the underlying dealer floorplan receivables and the strength of the structure. Moody's also cited the manufacturer, dealer and product diversification within the GE Dealer Floorplan program and the experience of General Electric Capital Corp. as master servicer.
In the student loan space, a SLABS transaction from Educational Funding of the South or Edsouth called EFS Volunteer No. 2 LLC Series 2012-1 is marketing.
The offering's notes will be issued pursuant to a discrete trust indenture dated May 1. The proceeds will be used to redeem (class A-1 and class B) and exchange (class A-2) certain existing notes in EFS' 1993 indenture.
The trust collateral comprises FFELP loans, including less than 2% of rehabilitated loans with guaranties offered by eligible guarantors.
Meanwhile, Moody's has assigned provisional ratings to $428.4 million securities to be issued by Chesapeake Funding, a bankruptcy-remote special purpose entity wholly owned by PHH Corp. The provisional ratings assigned to the fleet lease-backed offering are as follows: 'Aaa (sf)', 'Aa2 (sf)' and 'A2 (sf)' to the Class A, Class B and Class C, respectively.
First-time Issuer
Meanwhile, J.D. Byrider, a used-car sales and finance enterprise, issued its first auto securitization last week.
The $145 million deal was led by RBS Securities. The issuance was rated by both Standard & Poor's and DBRS and the ratings on the notes ranged from 'AA' to 'BB'.
The company said it planned to finance new contract originations and access the ABS market at least annually.
“Entering the securitization market has been our focus for almost a year, and this deal allows us to access a much larger pool of capital to fund our growth,” said Steve Wedding, CEO of J.D. Byrider. “With 20 company-owned stores, we now have the critical mass needed to take advantage of this opportunity. As we continue to develop and acquire additional stores, regularly accessing the securitization market will be essential.”
Altamont Capital Partners acquired J.D. Byrider a year ago. In that time, the company has added 13 stores and four new franchise groups.
Growth is coming from the company store and existing franchisee expansion, as well as the addition of new franchisees. J.D. Byrider operates 116 franchised- and 20 company-owned dealerships in 30 states. It expects this expansion to continue in several markets.
