Commercial Credit Group plans to issue $265 million of securities backed by the mid-ticket equipment loan and lease contracts, according to a DBRS presale report.
The deal, dubbed CCG 2014-1, is the fourth term asset-backed securitization sponsored by CCG and rated by DBRS, and the first deal for the issuer in 2014.
The trust will issue a $72.4 million money market trache with a preliminary R-1’ rating from DBRS. Also on offer is $177 million of AAA’ rated, class A notes and $15.8 million of A’ rated, class B notes. The class A-2 and B notes are due on November 2021
The class A notes benefit from credit support of 10.25% and the class B note have credit support of 4.50%.
Over 93% of the pool of collateral is comprised of mid-ticket equipment backed loans; leases make up less than 7% of the pool, according to DBRS. The loans and leases have been extended to commercial customers in CCG’s three core origination segments: construction (32%), transportation (42%) and waste management (25%).
CCG has originated over $1.6 billion of equipment loans and leases and has been profitable in all of its seven full years of operation, according to the presale report.
