The auto fleet lease sector witnessed the coming of a first-time entrant last week as Chicago-based leasing company Wheels, Inc. priced a private, $500 million deal led by JPMorgan Securities, its first ever term securitization. Wheels had previously issued discreetly into the conduit market.
The deal is backed by automobile leases made to credit-rated businesses primarily in the healthcare, pharmaceutical sales and manufacturing sectors, with 100 to 5,000 vehicle fleets. The four-tranche deal has two triple-A rated senior tranches as well as a B class rated Aa3' by Moody's Investors Service and A' by Standard & Poor's. The C class was rated Baa1' by Moody's and BBB' by S&P, respectively.