CNH Industrial Capital America has priced its latest equipment lease securitization at similar spreads to its previous deal, completed in February, according to regulatory filings.
The $999.6 million CNH Equipment Trust 2014-B issued four tranches of senior class A notes and one tranche of subordinated class B notes. The A notes total $977 million, while the B piece is $22.5 million.
The 0.34 year class A-1 notes, which are rated 'P-1' by Moody's Investors Service and 'A-1+' by Standard & Poor's, yield 0.19%; the 'Aaa'/'AAA' rated 1.04-year class A-2 notes priced at 21 basis points over the interpolated swaps curve, compared with 22 basis points for a similar tranche of the February deal, CNH Equipment Trust 2014-A; the 'Aaa'/'AAA' class A-3 notes with a weighted average life of 2.30 years priced at 25 basis points over the interpolated swaps curve, compared with 23 basis points for the same tranche of 2014-A.
The collateral consists of fixed-rate installment sale contracts and retail installment loans secured by agricultural or construction equipment. As of April 30, the contract value of the receivables totaled nearly $1.04 billion. The figure’s present value, discounted at 4%, is equal to the aggregate volume of the issuance: roughly $999.6 million.
According to Moody’s, the collateral for the CNH Equipment Trust 2014-B is similar CNH’s previous deal from February, CNH Equipment Trust 2014-A. S&P did not rate CNH’s February deal, but compared the collateral of the deal currently being offered somewhat unfavorably to that of the collateral the last deal it did rate, CNH Equipment Trust 2013-D. The rating agency noted the weighted average seasoning of the leases has fallen to three months in the current deal from six months in the older deal. And S&P considers even six months of seasoning to be “fairly low.”
For CNH’s new deal, the joint bookrunners on the class A and B notes are Citigroup, Credit Agricole Securities, and RBS. The co-managers of the class A notes are BNP Paribas, Credit Suisse, and Fifth Third Securities.
The servicer is New Holland Credit Company.
