CIT is preparing a $750 million securitization of small-ticket equipment leases, according to Standard & Poor’s.
CIT Equipment Collateral 2014-VT1 will issue five classes of notes paying fixed rates of interest: S&P has assigned a preliminary A-1’ rating to $233 million of notes maturing in December 2015; an AAA’ rating to $232 million maturing in May 2017 and $230.7 million maturing in October 2019; an AA’ rating to $26.5 million maturing in February 2020; and an A’ rating to $27.7 million maturing in October 2022.
Barclays Capital is the lead underwriter.
Compared with CIT’s previous securitization of equipment leases, the collateral backing the latest transaction is less seasoned ( 11 months versus 15 months). The concentrations within the four primary product categories have changed slightly; the proportion of tech finance and office product channels decreased, offset by increases in the Avaya and Lenovo channels. The top vendor concentrations also rose modestly, with the largest, Konica Minolta, now representing about 33%, from about 31% in the previous deal.