Daimler Truck AG's subsidiary Daimler Truck Financial Services will sponsor $830 million in securitization bonds backed by trucking and transportation equipment loans and installment sales contracts, in its second securitization after breaking away from Mercedes-Benz Group and its fifth overall.
The transaction Daimler Trucks Retail Trust 2023-1 will issue the notes to investors through four classes of notes, according to ratings analysts at Moody's Investors Service. Asset Securitization Report's deal database notes that the deal is slated to close on September 29.
BofA Securities is the lead underwriter on the deal, which is comprised of top-rated senior notes. As the transaction repays investors, the notes will benefit from a structure with a 0.25% reserve account, 8.75% in overcollateralization and excess spread.
The proceeds from the deal finance 5,077 contracts that have an average contract balance of $169,772 and had original terms of 57 months. A vast majority of the pool, 92.5%, will finance the purchases of tractors, while
Tractors make up the vast majority of the vehicles in the pool, 92.5%, while trailers, trucks and buses account for 4.1%, 2.3% and 1.1%, respectively. Overall, 86% of the equipment is new. Among the collateral pool's other attributes,
When broken down by customer segment, fleet equipment accounts for the vast majority of the pool, 71.3%; small businesses 23.9%; and pledgeline business 4.9%.
Fitch and Moody's will assign ratings to the notes, with neither rating the A-1 notes. Fitch will assign ratings of 'AAA' on the A-2 through A-4 notes and Moody's will assign ratings of 'Aaa' on A-2 through A-4 notes.
