Last Friday, CNH Capital America filed an S-3 with the Securities and Exchange Commission (SEC) to issue a potential six-tranche securitization backed by agricultural or construction equipment loans under its program called CNH Equipment Trust.

CNH last came to market earlier this month with CNH Equipment Trust 2010-C. The deal, which was rated by both Standard & Poor's and Moody's Investors Service, is backed by retail equipment loans. Royal Bank of Scotland, Credit Agricole Securities and Societe Generale managed the five-tranche offering.

To access the full S-3 filing with the SEC, please click on this link. Also, for a copy of the  2910-C transaction, please access the link below.

Meanwhile, oveseas deal activity continues on with a securitization from China. 

China's largest commercial vehicle sales, servicing, leasing, and support network AutoChina International  has started securitizing a portion of its commercial vehicle leases via apartnership with CITIC Trust Co., a division of CITIC Group, a release from AutoChina said. 

Under the program, up to RMB60 million  of AutoChina's commercial truck leases will be securitized  every month and sold through CITIC.  The maximum amount is expected to increase over time, the release said.

The investment products will have a one-year maturity and pay interest at rates that are higher versus standard savings account rates currently available in the country. AutoChina will incur a cost of roughly 9% per annum. Additionally, AutoChina will still own the vehicles that are the subject of such deals and will remain responsible for servicing the existing retail leases of such vehicles. These new products will be rated by CCXI, which is China's first nationwide domestic credit rating agency that was created with the approval of the People's Bank of China.

AutoChina started engaging CITIC Trust in a new commercial vehicle financing structure in September 2009.  In this structure, CITIC acted as an intermediary for all of AutoChina's leases. 

In the past year, AutoChina's relationship with CITIC has helped to increase the firm's name recognition among its potential owner/operator customers and among potential financing sources. The new securitization program expands AutoChina's existing relationship with CITIC Trust.

"We are very excited to announce this innovative new securitization program," Yong Hui Li, AutoChina's Chairman and CEO said in the release. "As a pioneer in China's commercial vehicle leasing industry, we have faced numerous challenges as our business has grown."

He added that they think that this program is a first in China for securitizing commercial vehicle leases.

"Not only does it provide us with another source of financing, it also better matches funding to the actual times when the leases are originated," he said. "This program provides further validation of the strength of our business model and our ability to work with key strategic partners. We look forward to continuing to differentiate ourselves from our competitors, who are generally much smaller in size and scale."

"We believe AutoChina is well positioned to capitalize on a unique market growth opportunity," said Weimin Feng, CITIC Trust's general manager of its trust business. "We look forward to working with Mr. Li and AutoChina's outstanding management team in this innovative collaborative effort to continue providing thousands of individual entrepreneurs with access to financing for their transportation businesses."

 

 

 

 

 

AutoChina International Limited ("AutoChina" or the "Company") /quotes/comstock/15*!autc (AUTC 24.99, +0.09, +0.36%) , China's largest commercial vehicle sales, servicing, leasing, and support network, today announced that it has begun securitizing a portion of its commercial vehicle leases through a landmark partnership with CITIC Trust Co. Ltd. ("CITIC Trust" or "CITIC"), a division of CITIC Group. AutoChina believes this securitization program is the first of its kind in China.
Program Overview
Each month, up to 60 million RMB of AutoChina's commercial truck leases will be securitized and sold to investors through CITIC. The maximum amount is expected to increase over time. The resulting investment products will have a one-year maturity and pay interest at rates that are higher than standard savings account rates currently available in China. AutoChina will incur a cost of approximately 9% per annum under this program. In addition, AutoChina will continue to own the vehicles that are the subject of such transactions and will be responsible for servicing the existing retail leases of such vehicles. These new products will be rated by CCXI, China's first nationwide domestic credit rating agency created with the approval of the People's Bank of China.
In September 2009, AutoChina began engaging CITIC Trust in a new commercial vehicle financing structure where CITIC acted as an intermediary for all of AutoChina's leases. Over the past year, AutoChina's relationship with CITIC has helped to increase the Company's name recognition among its potential owner/operator customers and among potential financing sources. This new securitization program expands upon AutoChina's existing relationship with CITIC Trust.
Mr. Yong Hui Li, AutoChina's Chairman and CEO, noted, "We are very excited to announce this innovative new securitization program. As a pioneer in China's commercial vehicle leasing industry, we have faced numerous challenges as our business has grown. This is an example of our ability to adapt and lead the way with new solutions. We believe this program is the first of its kind for securitizing commercial vehicle leases in China. Not only does it provide us with another source of financing, it also better matches funding to the actual times when the leases are originated. This program provides further validation of the strength of our business model and our ability to work with key strategic partners. We look forward to continuing to differentiate ourselves from our competitors, who are generally much smaller in size and scale."
Mr. Weimin Feng, CITIC Trust's General Manager of its Trust Business, stated, "We believe AutoChina is well positioned to capitalize on a unique market growth opportunity. We look forward to working with Mr. Li and AutoChina's outstanding management team in this innovative collaborative effort to continue providing thousands of individual entrepreneurs with access to financing for their transportation businesses."
AutoChina International Limited is China's largest commercial vehicle sales, servicing, leasing, and support network. AutoChina's operating subsidiary was founded in 2005 by nationally recognized Chairman and CEO, Yong Hui Li. The Company owns and operates 246 commercial vehicle financing centers across China; and primarily provides sales-type leasing and support services for local customers.

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