GE plans to issue two series of notes from its dealer floorplan master note trust, according to a Fitch Ratings presale. No word yet on the size of the transactions.
Credit Suisse and Mizuho Securities are the lead underwriters on both deals.
The Series 2015-1 transaction is structured with four tranches. The class A notes will be rated AAA’ by Fitch, the class B notes will be rated A’, the class C notes will be rated BBB’ and the class D notes will not be rated. Credit enhancement on the class and B note is 11.9% and 10% respectively. All of the notes are due January 2020.
The Series 2015-2 deal is structured similarly with four tranches that are rated from AAA’ to BBB’ and the class D notes are unrated. The notes have a longer maturity date and are due January 2022 but they benefit from the same level of credit enhancement as the 2015-1 notes.
The trust is backed by receivables from a portfolio of 1,500 manufacturers, 25,000 dealers and 13 separate product lines. Most of the portfolio is secured by various types of equipment, with power sports, marine, lawn and garden and recreational vehicles representing the largest concentrations.
GE is a regular issuer in the securitization market over the past seven years and has eight public series of notes outstanding, the last of which was issued in October 2014. There are also four private series still outstanding — 2008-A, 2010-B, 2013-A and 2013-B— and two variable-funding notes issued in 2013 — 2013-VFN-1 and 2013-VFN-2.