Bombardier Capital Inc. is preparing one of its mixed-bag offerings of consumer recreational loans. The Jacksonville, Fla.-based company has filed a shelf with the Securities & Exchange Commission allowing for a securitization in the $300 million range of everything from snow mobiles to horse trailers that is scheduled to land before the end of the year.
The deal will be led by Merrill Lynch & Co., and will be structured into three A-class floating-rate notes.
The collateral backing the deal will come from retail installment contracts and promissory notes for the purchase of motorized and non-motorized recreational and travel equipment, including three- and four-wheel off-road vehicles, snowmobiles, personal watercraft, motorcycles, motorhomes, trucks, golf carts, motorboats, lawn tractors, hitch-mounted and bed-mounted trailers for carrying horses, cargo or boats, and keyboard instruments such as pianos and organs.
One investor said such "kitchen sink" offerings fail to interest him because of the lack of theme to the deals. But the investor said that what the buyside looks for on these types of transactions is a vertically-integrated issuer such as Bombardier or Yamaha - companies that both manufacture and sell, in addition to providing the financing for the products they securitize.