Ascentium Capital LLC is issuing a new equipment receivables trust that “relevers” the overcollaterization and interest assets of a previous securitization it has sufficiently paid down, according to sources.
Ascentium, which originates and services equipment leases and loans through its own technology finance platform, is sponsoring Securitized Equipment Receivables Trust 2016-1 (SERT 2016-1), which will issue two series of asset-backed notes of an undetermined size.
DBRS this week assigned the Class A notes an ‘A’ structured-finance rating and the Class B notes a ‘BBB’ rating.
In a release, DBRS said the assets securing the notes included a “certificated interest in a special-purpose vehicle” owning a pool of equipment-lease contracts and related collateral.
According to sources, those assets are primarily the remaining OC and capitalized interest account assets from Ascentium Equipment Receivables 2015-1 LLC (ACER 2015-1).
Ascentium was a $256 million equipment-lease securitization vehicle issued in March 2015 that issued notes backed by lease receivables of small-ticket commercial equipment for physician offices, gas stations, hotels, restaurants and other sectors, according to Moody’s Investors Service.
The original OC was 3% (or about $9 million) of a $303.1 million receivables portfolio covering 6,254 lease contracts, according to Moody’s Investors Service. The transaction also included a 1.5% reserve fund.
Ascentium 2015-1 was the company’s third ABS, and was underwritten by Credit Suisse and Bank of America Merrill Lynch.
No presale report was issued on SERT 2016-1.