Priced guidance was issued on Friday on Ascentium Capital’s second-ever securitization of equipment leases, the $201 million Ascentium Equipment Receivables 2014-1.

The deal, which is lead managed by Bank of America Merrill Lynch, is collateralized by a pool of equipment loans and leases sponsored by Ascentium that in turn are backed by small ticket equipment used for commercial purposes in physician offices, gas stations, hotels and restaurants.

Moodys Investors Service assigned preliminary ratings on the deal. The ‘Aaa’-rated, class A2 notes are being talked at the 75 to 80 basis point area over the Eurodollar synthetic forward curve, according to an Interactive Data report. The notes have a final maturity date of Jan. 10, 2017. 

Price talk on the class B notes, rated ‘Aa2, with a final maturity of Oct. 10, 2018, is at swaps plus 90 basis points; and the ‘Baa2’, class D notes with a final maturity of June 10, 2021 are being talked at swaps plus 245 basis points.

The structure will also offer ‘A2’-rated, class C notes with a final maturity of Nov. 13, 2018 but guidance was not available on this tranche.

Ascentium also acts as the servicer on the notes.  Unlike many other equipment lease deals, this has a backup servicer, U.S. Bank National Association, which also serves as custodian for the transaction. The bank will “maintain custody of the original contracts securitized in the transaction.” Moody’s noted in its presale report that this arrangement mitigates the risk, that, in the event of a default, Ascentium would handover the notes to a third party that could take priority over the lien held by bondholders.

Ascentium was organized in 2011. As of December 31, 2013, its had approximately $360 million under managemen. The company is headquartered in Houston, TX. It closed its first term securitization in November 2012.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.