German SME ABS Joins Europe’s Pipeline
ALBIS Mobil Lease GmbH, UTA Leasing GmbH, and Kögel Leasing GmbH plan to issue up to €147.23 million ($196.2 million) backed by leases and hire purchase receivables.
The underlying lessees are commercial entities predominantly from the German small and midsize enterprise (SME) sector. This is the originator's third public securitization transaction. The issuer was last in the market in February 2012 with TruckLease's Compartment No. 2.
Standard & Poor's and Fitch Ratings have both assigned ratings to the deal called TruckLease S.A. Compartment No. 3.
Landesbank Baden-Württemberg and Gallinat Bank AG are lead managers on the deal.
The capital structure will offer up to €100 million in triple-A rated notes; €11.7 million in double-A rated notes; €11.7 million in single-A rated notes and €7.3 million in triple-B notes.
At the same time, TruckLease Compartment No. 3 will issue €16.6 million in subordinate notes that were not been rated by either ratings agency.
According to Fitch, the industry and single obligor concentrations in the portfolio are higher than typical auto ABS transactions. Lessees are predominantly self-employed individuals (micro-SMEs). A large portion of the lessees (roughly 60% of the portfolio) can be allocated to one industry - transportation.
Fitch said that the portfolio is “relatively small compared with typical auto ABS transactions, with only 2,061 contracts and 1,040 obligors.”
In January, Société Générale issued Red & Black TME Germany, a securitization of equipment leases made to SMEs by the bank’s subsidiary, GEFA. The €513 million tranche of class A notes priced at 50 basis points over one month Euribor.
According to figures reported by Fitch, in 2012 and 2013 YTD there has been about €1.5 billion issuance from between 5 and 10 transactions in SME ABS transactions including equipment, auto and mixed leases to SMEs. These are generally smaller transactions and most of these will have been sold to the market.