General Electric launched a $727 million securitization backed by equipment lease receivables at wider spreads than the last equipment loan securitization to price, CNH Equipment Trust 2014-B, according to a person familiar with the deal.

The capital structure of the deal, called GE Equipment Transportation LLC, Series 2014-1, includes $700 million of class A notes. The one-year, class A-1 notes, rated 'AAA'/ 'Aaa' respectively by Fitch Ratings and Moody's Investors Service, priced at a spread of 25 basis points over the eurodollar synthetic forward curve (EDSF). The two-year, triple-A rated class A-2 notes priced at 31 basis points over interpolated swaps.

By comparison, the class A-1, one-year notes issued from CNH Equipment Trust 2014-B priced at 21 basis points over EDSF and the two-year triple-A notes priced at 25 basis points over interpolated swaps.

GE’s pool is comprised of loans and leases made to U.S. obligors. The loans have a weighted average seasoning of 12.42 months, with a weighted average remaining life of 49.74 months.

GE Capital has securitized commercial loans originated by its commercial lending and leasing division since 2003 and has securitized commercial leases similar to the types included in this transaction originated by its commercial lending and leasing division since 2010. The size of this portfolio was in excess of $3.7 billion as of March 31, 2014, according to the regulatory filing.

Barclays and Mizuho Securities are listed as the joint bookrunners on the transaction.

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