Enterprise Fleet Financing is preparing to sell $1.2 billion in asset-backed securities, secured by a unit of beneficial interests in vehicle and lease contracts extended to small businesses.
The series 2025-2 will issue notes through four senior tranches of class A notes, all of which are fixed rate, according to S&P Global Ratings, adding that the deal is slated to close on May 6. EFF 2025-2's initial and target overcollateralization levels, which were 6.27% and 7.77%, respectively, were effectively the same as the EFF 2025-1 transaction, which were 6.28% and 7.78%, respectively. Excess spread, however, was slightly lower at 4.49%, down from 5.39% seen on the previous deal, S&P said.
The A1, A2, A3 and A4 classes have legal final maturity dates of May 20, 2026, Feb. 22, 2028, June 20, 2029 and Dec. 22, 2031.
EFF 2025-2 will allocate revenue collections to the notes on a pro rata basis between the class A notes and the seller's interest once the overcollateralization has built to the target percentage, S&P said.
JPMorgan Securities is the deal's lead underwriter.
The pool appears to be diversified by obligor, with the top concentration contributing just 1.88% of the pool's underlying value, while the top five obligors represented 3.61% of the pool, down from 6.48%.
The collateral also appears to be diversified, with closed-end leases accounting for 0.41% of the pool, down from 0.73%, the rating agency said.
EFF 2025-2's credit enhancement structure includes a delinquency trigger, S&P said. If pre-determined delinquency levels are breached, the transaction will maintain lease payment amounts in the structure until the class A notes are fully paid down.
S&P assigns A1+ to the A1 notes; and AAA to the A2 through A4 tranches.
