Commercial Credit Group, an equipment lease and lending firm in the transportation, construction and waste management sectors, is planning to issue $183.43 million of notes collateralized by equipment loan and lease contracts.

The asset-backed securitization is being issued in a three-tranche structure, including a one-year money market $56.5 million slice of Class A-1 notes that has a preliminary ‘A-1+’ rating from Standard & Poor’s.

The capital stack in CCG Receivables Trust 2016-1 also includes $110.58 million in ‘AAA’-rated Class A-2 notes, with like the A-1 notes carries a 13.1% credit enhancement. The Class B notes, rated ‘A’, total $16.35 million are have a 7.6% CE. The A-2 and B notes each carry six-year terms.

The transaction is the fourth ABS issued by CCG that has been rated by S&P.

Compared to its previous 2015-1 transaction, CCG is presenting a more diverse pool of loans and leases with the top five obligors comprising only 3.5% of the collateral. However, there is a lighter concentration of waste management-related contracts, which have historically presented loss volatile and fewer losses than construction- and transporation-based loans and leases.

BMO Capital Markets, BB&T Capital Markets and SunTrust Robinson Humphrey are the underwriters. The deal is expected to close June 14.

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