Commercial Credit Group priced $265 million of securities backed by the mid-ticket equipment loan and lease contracts, according to an Interactive Data report.
The deal, dubbed CCG 2014-1, is the fourth term asset-backed securitization sponsored by CCG and rated by DBRS and Standard & Poor’s, and the first deal for the issuer in 2014.
The $177 million of triple-A notes priced at 53 basis points over eurodollar synthetic forward curve. The $15.8 million, single-A rated notes priced at swaps plus 115 basis points. Both classes of notes are due on November 2021.
J.P. Morgan and BMO Capital Markets are the lead underwriters on the deal.
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 DBRS presale report.