General Electric Capital is marketing $500 million of securities backed by equipment dealer floorplan financing.
JP Morgan Securities and RBC Capital Markets have been mandated to lead the transaction, according to Fitch Ratings.
GEDFT 2014-2, is backed by receivables from a portfolio of dealer inventory associated with approximately 1,700 manufacturers, 25,000 dealers and 13 separate product lines. Most of the portfolio is secured by various types of equipment with technology with power sports, marine, lawn and garden and recreational vehicles representing the largest concentrations.
Fitch and Moody’s Investors Service have assigned the $500 million of class A notes a ratings of AAA’/ Aaa’. Initial available credit enhancement for the class A notes is 11.90%. The trust will also offer $10.53 million of A’/ Aa2’ notes and $15.79 million of BBB’/ A2’ rated notes. All of the notes are due October 2019.
GE completed a $675 million equipment floorplan deal in July. The AAA’ rated, 3-year class A notes were sold at a spread of 38 basis points over one-month Libor.
Equipment floorplan ABS issuance stands at $9 billion so far this year compared to a total of $10 billion issued in 2013, according to Standard & Poor’s.