Automotive Rentals (ARI) plans to issue a $453 million ABS backed mostly by fleet lease contracts for light trucks and cars.
The deal, ARI Fleet Lease Trust 2013-A has been assigned preliminary rating by Standard & Poor’s. All of the leases in the series 2013-A pool are fixed-rate leases. S&P said in the presale report that this eliminates basis risk associated with variable rate contracts that were present in the issuers previous deal, the series 2012-B poo where fixed-rate loans accounted for only 1% of the pool.
The class A-1 notes are rated ‘A-1+’; the class A-2 and A-3 notes are rated ‘AAA’. The size of each tranche will be determined at pricing, according to the S&P presale.
Bank of America Merrill Lynch, Citigroup, JPMorgan Chase, Mitsubishi UFJ Securities, PNC Capital Markets and RBS Securities have been named underwriters on the deal.
