General Electric Capital priced $500 million of securities backed by equipment dealer floorplan financing.
GEDFT 2014-2 sold the three-year, Aaa’/ AAA’ rated bond at a spread of 45 basis points over one-month Libor. The bonds were assigned ratings by Moody’s Investors Service and Fitch Ratings.
GE completed a $675 million equipment floorplan deal in July. The AAA’ rated, three-year class A notes were sold at a spread of 38 basis points over one-month Libor.
JP Morgan Securities and RBC Capital Markets were mandated to lead the transaction.
The deal 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.
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.