Enterprise Fleet Management is preparing its eight rental car securitization, according to a presale report published by Fitch Ratings.
The $800.2 million deal, Enterprise Fleet Financing Series 2014-2, will be backed by payments on a pool of open-end and closed-end vehicle fleet lease contracts for cars, light-duty trucks, and other vehicles. There will be 35,801 leases, with strong lessee diversification—6,968 obligors. This is nearly double the 3,984 obligors from the EFF Series 2014-1 transaction. Proceeds from the transaction will be used for general funding purposes.
The weighted average seasoning for the collateral pool is 4.12 months.
Three tranches of notes will be offered, including a $200 million F1+’ preliminarily rated class A1 tranche, which will reach final maturity in August 2015. The $520 million class A2 and $80.2 million class A3 notes were assigned provisional AAA’ ratings and mature in March 2020.
JPMorgan Securities is the lead underwriter.
Enterprise Fleet Management’s last transaction was in February, when the company issued $801.2 million Enterprise Fleet Financing Series 2014-1. The deal is backed by a special unit of beneficial interest in lease contracts and underlying vehicles. Standard & Poor’s rated the $216 million class A-1 notes, that will reach maturity in February 2015, A-1+.’ The $484 million class A-2 notes and $101.2 million class A-3 notes were rated AAA.’
Enterprise Fleet Management’s managed portfolio increased substantially in 2013 to more than $2.4 billion from 2012’s $2.8 billion.
