CNH Industrial is prepping a $750 million securitization of equipment loans, according to Fitch Ratings.

Barclays is the lead underwriter.

CNH Equipment Trust 2015-C will be backed by retail installment loan sales contracts on new and used agricultural equipment and construction equipment originated by CNH Industrial America and serviced by New Holland Credit Co. both units of CNH Industrial.

The concentration of agricultural equipment leases, at 87%, is the lowest in any deal sponsored by CNH since 2008, though it remains significantly higher than pre-2009 transactions. According to Fitch, losses on agricultural equipment have historically been lower than losses on construction equipment. While the high concentration of a single equipment type limits pool diversification, this is partially mitigated by geographic diversity, diversification within the agricultural sector, and the versatility of the equipment.

The concentration of new equipment, at 56% of the pool, is also the highest since 2009. Additionally, the pool contains 64% in annual pay contracts, slightly lower than recent transactions; Fitch attributes this to the decrease in the concentration of agricultural equipment.

The trust will issue $160 million of money market notes and four tranches of notes with a preliminary ‘AAA’ rating from Fitch; all five tranches benefit from credit enhancement of 4.5%.

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