Enterprise is readying $649 million of securities backed by leases on fleets of cars and light trucks.

Enterprise Fleet Financing, Series 2016-1 will issue a $193 million tranche of money market notes and two tranches of notes with preliminary ‘AAA’ ratings from Fitch Ratings with a final maturity of September 2021. All three tranches benefit from credit enhancement of 8.64%.

Bank of America Merrill Lynch is the lead underwriter.

The notes will be backed by a pool of 34,657 open-end and closed-end fee leases to 6,536 obligors. The leases have an average balance of $20,276 and a weighted average remaining term of 37 months.

Among the deal’s strengths, according to Fitch Ratings, is minimal concentration of obligors and industries. The top obligor represents 0.74% of the pool, while the top industry — construction —represents only approximately 7.96%. However, consistent with prior transactions, there is a large concentration of light and medium duty trucks, which comprise approximately 82% of the pool.

Approximately 97% of the leases are open-end, meaning the lessees bear the risk that the vehicles will be worth less than expected at the end of the lease term. The remaining 3% are closed-end leases, under which the trust will bear the wholesale market risk.

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