CNH Capital priced its upsized $1 billion equipment trust securitization dubbed CNH Equipment Trust 2011-A. The deal was previously $800 million.
The transaction offered investors three Fitch Ratings- and Moody's Investors Service- rated 'AAA'/'Aaa' tranches as well as one 'A'/'A2'-rated tranche.
Bank of America Merrill Lynch and Deutsche Bank Securities acted as joint lead managers on the offering. BNP Paribas, Rabobank and the Royal Bank of Scotland acted as co-managers on the deal.
The $251 million, 'AAA' rated class A2 piece priced at 26 basis points over EDSF. The class A3, 'AAA' rated note priced at 33 basis points over swaps and the class A4, 'AAA' rated note priced at 47 basis points over swaps. The class B notes, rated 'A', priced at 90 basis points over swaps.
The deal is backed by retail installment loan sale contracts on new and used agricultural equipment and construction equipment originated by the issuer. The receivables are serviced by New Holland Credit Co., a subsidiary of CNH Capital. CNH Capital is a subsidiary of Fiat Industrial.
