CNH Capital America had to pay up for its latest, $755.5 million equipment lease securitization. The deal, CNH Equipment Trust 2013-C, priced at levels that were wide of its previous transaction, which was brought to market in May, before talk of the Federal Reserve tapering its bond buying roiled financial markets.
This time, the $165 million money market class A-1 priced to yield 0.25%, according to a filing with the Securities and Exchange Commission. It has a weighted average life (WAL) of 0.36 years and is rated A-1+/P-1 by Standard & Poor’s and Moody’s Investors Service.
By comparison, the previous deal had a class with a WAL of 0.42 years that priced to yield 0.23%.
A $250 million, AAA/Aaa-rated A-2 tranche with a WAL of 1.14 years priced at a spread of 27 basis points over the Eurodollar synthetic forward curve. That compares with EDSF plus 12 basis points for a similar class of the previous deal.
A $223 million, AAA/Aaa-rated A-3 tranche with a WAL of 2.44 years priced at 34 basis points over the interpolated swaps curve; that compares with swaps plus 25 basis points for the previous deal.
A $100.5 million, AAA/Aaa-rated A-4 tranche with a WAL of 3.8 years priced at 44 basis points over the interpolated swaps curve; that compares with swaps plus 29 basis points for the previous deal.
A $17 million, A+/A2-rated B tranche with a WAL of 3.88 years priced at 80 basis points over interpolated swaps. The comparable class of the previous deal priced at swaps plus 55 basis points.
Credit Suisse, Deutsche Bank Securities, and Rabo Securities are joint bookrunners on the class A and B notes. Citigroup, Third Street Securities, and Societe Generale are named as co-managers on the class A notes only.
The notes are backed by fixed-rate retail installment sale contracts and retail installment loans secured by agricultural or construction equipment.
New Holland Credit Company will service the notes.