Dell Financial Services is tapping the securitization market for the second time this year.
Dell Equipment Finance Trust 2015-2 will issue $873.154 million of notes backed by payments on equipment leases and loans as well as recovery and residual proceeds on the associated equipment.
Compared with Dell’s previous securitization, completed in April, the collateral backing this deal has a higher concentration of obligors, according to Standard & Poor’s. The top five obligors account for 18.3% of the collateral, up from 16.76% in the previous deal.
There is also approximately three months less seasoning than the pool backing the earlier deal, although this is not enough for S&P to adjust its expectations for losses.
And the series 2015-2 pool also has more contracts in the large enterprise segment and fewer in the medium and small business segment contracts, which S&P believes reduces risk. Historically contracts to larger enterprises have exhibited much lower losses.
The trust will issue $308 million of money market notes with a preliminary ‘A1’ rating from S&P and two tranches of term notes with preliminary ‘AAA’ ratings: $272 million of fixed- and floating-rate notes with a legal final maturity of December 2017 and $168.8 million of fixed-rate notes maturing in September 2020. There are also three subordinate tranches with ratings ranging from ‘AA’ to ‘BBB.’