Enterprise Fleet Management priced its eighth rental car securitization, according to an Interactive Data report.
The deal, Enterprise Fleet Financing Series 2014-2, was upsized on the back of investor demand to $950 million from $800 million. Three tranches of notes were sold, including a senior, money market fund tranche that priced at a yield of 0.25%. The notes will reach final maturity in August 2015.
The senior class A2 and class A3 notes priced at 42 basis points over the Eurodollar synthetic forward and swaps plus 40 basis points, respectively. The notes are due to mature in March 2020.
The notes are 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, 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. JPMorgan Securities is the lead underwriter.
Total year to date equipment/fleet lease ABS issuance is $13 billion, with fleet lease accounting for $4 billion, according to Standard & Poor’s.
