A Dutch commercial vehicle fleet leasing firm is marketing its fourth overall European securitization, with the latest transaction pooling nearly €700 million (US$783.26 million) of lease receivables from corporate and public-sector clients in The Netherlands.
The collateral for Bumper 9 (NL) Finance B.V. features 33,972 contracts to corporate and small/medium-size enterprise as well as government clients of LeasePlan Nederland N.V., (LPNL) a subsidiary of Netherlands-based international leasing giant LeasePlan Corp. N.V. (LPC).
In addition to lease receivables, the pool also includes residual value claims, or proceeds from the eventual sale of the vehicles that are leased through agreements. The lease receivables total €378.5 million, while the RV claims are estimated at €321.5 million.
Both types of assets back two classes of notes being sold: a €542 million tranche of Class A note with preliminary triple-A ratings from Moody’s Investors Service and DBRS; and €31.5 million tranche of Class B notes rated Aa2 /AA. The Class A notes have 22.9% total credit enhancement, which includes a reserve fund of 0.4% of the collateral pool.
Also part of the capital stack is a €126 million subordinate loan that will be advanced at closing to help in financing LPNL’s vehicle purchases. LPNL also has a one-year revolving period in Bumper 9 to include additional contracts as they are deployed.
Moody’s has a cumulative default expectation of 3% for the pool, and a recovery rate of 45%.
LPC has previously sponsored commercial vehicle lease securitizations in The Netherlands, (2014), Germany (2016) and the UK (2017).
ABN Amro and HSBC were joint lead arrangers on the transaction.
