Arranger Fleet Securities has closed on the Berkadia/Finova bailout-loan syndication, placing the receivables into 18 asset-backed commercial paper conduits.
Fleet was able to raise approximately $6 billion through the deal, which is structured as a five-year co-purchase securitization facility enhanced by a triple-A guarantee from Berkshire Hathaway, which is a triple-A rated company.
Berkadia is a joint venture between Berkshire Hathaway and Leucadia National Corp., which partnered for the purpose of funding Finova Capital Corp. out of bankruptcy. It is understood that Berkadia will begin liquidating Finova, estimating that its assets are worth as much as $12 billion.
Fleet's Eagle Funding Capital Corp. took $467 million of the deal. Also participating were the following: West LB (Paradigm Funding: $400 million and Compass U.S. Acquisition: $160 million), Commerzbank (Four Winds Funding: $420 million), Barclays Bank (Sheffield Receivables Corp.: $420 million), Bank One (Jupiter Securitization Corp.: $420 million), DG Bank (Autobahn Funding Co.: $420 million), CIBC (Asset Securitization Cooperative Corp.: $420 million), Royal Bank of Canada (Old Line Funding Corp.: $420 million), ING Barings (Monte Rosa Corp.: $420 million), Bank of Nova Scotia (Liberty Street Funding:$205.3 million), National City (North Coast Funding: $205.3 million), Hypo-und Vereinsbank (Black Forest Funding Corp: $150 million and Bavaria Universal Funding Corp.: $55.3 million), Wachovia Bank (Blue Ridge Asset Funding Corp.: $205.3 million), SMBC Securities (Manhattan Asset Funding: $205.3 million), SunTrust (Three Pillars Funding Corp.: $182 million), and Bayerische Landesbank (Giro Multi-Funding Corp.: $88.7 million).
Note: conduit data derived from an ABCP weekly ratings update, which describes the placement without naming the seller, was distributed by Moody's Investors Service.