A pool of closed-end leases extended to commercial customers will secure about $1 billion in securitized notes, which will be issued from the Enterprise Fleet Financing, 2025-1 trust.
The deal will sell the asset-backed securities through four class A notes, according to the rating agencies that assessed the credit, S&P Global Ratings and Fitch Ratings. Enterprise Fleet will issue all fixed-rate notes, with final maturity dates ranging from Feb. 20, 2026 on the A1 tranche through Sept. 22, 2031 on the A4 notes, according to S&P.
For credit enhancements, the notes benefit from 6.28% in initial overcollateralization, with a 7.7% target, and a cash reserve equal to 1.0% of the pool balance.
In a few notable changes from the 2024-1 deal, 0.73% of the current pool is composed of closed-end leases, an increase from 0.55%, according to S&P. Light-duty trucks and vans account for a large majority of the vehicles, 84.1%, the rating agency said, with cars following at 12.86%.
The construction, manufacturer, government, oil and gas and HVAC represent single-digit exposures to the pool, at 5.39%, 5.15%, 4.81%, 4.31% and 4.29%, respectively.
In terms of obligor concentrations, the top two obligors account for 4.52% of the pool. The top five obligors represented 6.48% of the pool, up a tick from 6.45%. The top two obligors each exceed 1.50% of the pool balance, making it an additive factor in its stressed loss calculations, S&P said.
S&P assigns A1+ to the A1 notes and AAA to the A2 through A4 tranches. Fitch assigns F1+ to the A1 notes and AAA to the A2 through A4 notes.
