General Electric Capital Corporation is prepping a $508 million securitization of equipment leases, according to a presale report by Fitch Ratings.
Arranging the transaction are Citigroup Global Markets, RBC Capital Markets, RBS Securities, and Williams Capital Group.
Three long-term Class A tranches are rated triple A by Fitch, while a roughly one-year piece for $132 million is ‘F1+sf.’
Leases attached to office equipment make up about 93.1% of the collateral, which is in line with recent equipment lease deals from GE. However, office imaging equipment is behind a much larger portion of the leases in the upcoming deal as compared with recent transactions from the originator. About 89.32% of the pool comes from the office imaging division, a jump from the 51.74% share in GE’s 2012-1 transaction. This increase in asset concentration has prompted Fitch to raise its base loss expectation from the prior deal.
In general, these deals have been performing well, according to the agency.
“GECC’s managed static pool data have experienced improved loss performance for more recent vintages. Furthermore, all transactions issued by GECC have experienced cumulative net losses (CNLs) inside of Fitch’s initial expectations,” Fitch said.
In terms of geography, Florida accounts for the largest proportion of the collateral, with 11.79% of the total.