Commercial leases and loans to borrowers in the services, plus finance insurance and real estate industries, will secure $1 billion in asset-backed securities (ABS) from sponsor Dell Financial Services.
The deal, Dell Equipment Finance Trust, series 2026-1, is slated to close on April 22, issuing six tranches of class A, B, C and D.
Classes A1 and A2 have a legal final maturity of April 22, 2027 and July 24, 2028, respectively. Classes A3 through C mature on Dec. 22, 2031, and the class D notes have a maturity date of Nov. 22, 2032, according to Fitch Ratings.
All of DEFT 2026-1's senior tranches, classes A1 through A3, benefit from credit enhancement levels of 16.00%, the rating agency said. Classes B, C and D have credit enhancement levels of 15.10%, 10.80% and 5.00%, Fitch said. The structural credit enhancements include a non-declining cash reserve account funded with an amount equaling at least 1.00% of the initial discounted pool balance.
Additionally, the notes have initial overcollateralization of 4.00% of the pool's discounted balance, Fitch said.
Barclays Capital is the deal's lead manager, Fitch said, while Asset Securitization Report's deal database notes that Bank of America Merrill Lynch, SMBC Nikko Securities America and TD Securities are also on the deal as managers.
As for the pool, Fitch noted that companies in the public and large institution make up 89.7% of obligors, up from the 87.7% seen in DEFT 2025-2, an increase that was driven largely by an increase in the large enterprise institution segment, Fitch said.
The largest segment of the contracts are true leases, at 38.39%, followed by finance leases and loan, at 28.40% and 33.1%, respectively.
The services industry account for the largest portion of the 6,035 contracts, with 42.05% of the portfolio. After that the finance, insurance and real estate segment accounts for the second largest, at 19.89%. Manufacturing, public administration and the transportation, communications and public utilities industries round out the top five industries represented in the pool, with 17.92%, 7.76% and 5.67% of the pool, respectively.
Fitch assigns F1+ to the A1 notes, AAA to the A2 and A3 notes, and AA, A, and BBB to the B, C and D tranches. ASR's deal database notes that Moody's assigns P1 to the A1 notes; Aaa to the A2 and A3 tranches; and Aa1, Aa2 and A3 to the B, C and D tranches.
