Enterprise is marketing a $750 million rental fleet ABS. The capital structure includes one $750 million tranche of floating rate variable funding asset-backed notes with a final payment date October 3, 2017. The offering has been rated 'Aaasf' by Moody's Investors Service.
In a presale report, Moody's said that the issuer's portfolio is very granular compared with the portfolios of other fleet lease ABS sponsors.
The top lessee now comprises less than 1% of the pool and the top ten lessees currently account for less than 4% of the pool. The structure includes various concentration limits to lessen the pool composition migration risk in the revolving period, including a top lessee limit of 2.5% of the pool and the top ten lessees' limit of 10% of the pool.
The deal also features a sizable amount of excess spread, which is estimated to be around 4.5% p.a. at closing in the transaction as the leases have a relatively high yield versus other fleet lease portfolios. Excess spread makes up an sigfnicant part of the total available credit enhancement.
A performance guarantee will be provided by Enterprise at closing.