After a lull in the Canadian asset-backed market, two deals are getting ready to be marketed to investors. Coming out of the pipeline first is a C$140 million agricultural deal from Case Credit Canada and New Holland. Next, a C$300 million commercial mortgage-backed securities issuance from Merril Lynch Canada will enter the market.
The Case/New Holland deal, expected to price within the next week, is comprised of 45% of Case assets and 55% of New Holland assets. Agricultural makes up 88% of the offering and the remaining 12% is construction equipment. TD Securities is lead managing the deal.
The issuance includes $130 million in notes, of which five tranches are bullet-bond structure. The terms for the tranches range from six months to 30 months, in six-month increments. There is also an A-rated tranche comprised of 4% of the total issuance, and a seated cash account, which rises from 4% to 4.25% over the lifetime of the security.
Merrill is preparing its third CMBS deal of the year, a C$300 million transaction predominately comprised of multifamily, office, industrial and retail properties. The deal is expected to come to market as soon as mid- to late- October or as late as early November.
Merrill is structuring the deal similar to its other CMBS issued this year, the last of which was a $260 million offering in May from its Merrill Lynch Mortgage Loans shelf.