Frontier Leasing Corp. is in the process of selling approximately $50 million of small- and middle-ticket equipment lease-backed paper via WestLB, sources said. Proceeds from the term securitization are being used to pay down a multi-year warehousing facility of undetermined size, set up last year by WestLB, for interim funding of eligible lease contracts and financed equipment by Frontier.
The fixed-rate, Rule 144A offering contains three classes, rated single-A down through double-B. Specific capital structure details could not be confirmed. Credit support consists of the subordination of certificated classes, funds on deposit in a cash collateral account and overcollateralization.