General Electric Credit Corp. (GECC) has a new equipment lease transaction called GE Equipment Midticket LLC, 2010-1.
Fitch Ratings has assigned preliminary ratings to the offering, according to a presale report released this morning.
The $726.6 million-sized transsaction will be backed by commercial loans and leases on various types of equipment originated by GECC.
The GEEMT 2010-1 transaction is GECC’s seventh midticket equipment term ABS and the third to include indirect originations, according to Fitch.
Proceeds from the deal will be used for general funding purposes. Bank of America Merrill Lynch is serving a lead manager on the deal.
The ratings agency will rate the class A notes 'AAA', the class B notes 'AA'and the class C notes 'BBB'.
According to the rating agency, unlike prior GECC midticket transactions, the 2010-1 will include around $32.6 million (or 4.29% of the total collateral value) in booked residuals associated with lease contracts.
As Fitch was not provided any detailed information related to residual booking policies, disposition policies, residual collateral stratifications, or historical residual realization performance data for these equipment types; no credit to residuals was incorporated in the agency’s cash flow analysis.
Other Deals in the Market
Aside from GECC's equipment deal, other transactions in the market include a student loan ABS and two auto securitizations, further proving the dominance of the sector in terms of year-to-date deal volume.
Toyota Motor Credit Corp. is in the market with a $1.294 billion auto ABS. The five-tranche offering is managed by Barclays Capital, Citigroup Global Markets, and JPMorgan Securities.
The other deal is from Australia called FP Turbo 2010-1 being sold by Fleet Partners Pty Ltd. The six-tranche deal is worth A$178.8 million.
Higher Education Loan Authority of the State of Missouri is also in the market with a $496.3 milllion FFELP-backed ABS managed by Morgan Stanley and BMO Capital Markets.
For futher preliminary details on the above three deals, please see the link below from the ASR Scorecard database.