Granite Park Finance Holding is offering $406 million in asset-backed securities to investors. Equipment finance securitizer Stonebriar Commercial Finance actually originated the leases and other contracts underpinning this deal, which is Granit Park Finance Holding's first securitization.
Stonebriar Commercial Finance, based in Plano, Texas, will also service the notes, according to ratings analysts at Moody's Investors Service. Kroll Bond Rating Agency will also assign ratings to the deal, which counts Bank of America Merrill Lynch as its manager, according to Asset Securitization Report's deal database. The deal is slated to close on October 31, according to ASR.
Moody's will rate eight of the 10 tranches of notes in the transaction, it said, while KBRA will assign ratings to classes A2 through F, according to the ASR database. The three class A notes have initial hard credit enhancement that amounts to 36%, and consists of overcollateralization, the reserve account (with an initial coverage amount of 1%) and subordination of all notes, except class G. Excess spread could extend even more credit enhancement to the notes, the rating agency said. Legal final maturities range from Oct. 21, 2024 through June 20, 2035, Moody's said.
The collateral pool is fairly diversified, Moody's notes. Stonebriar provides financing for a range of equipment clients, including general equipment, aviation, rail and real estate, according to the company's website. That range of services is reflected in the collateral pool's diversity, according to Moody's. Manufacturing and assembly, marine, corporate aircraft, sand plant and renewable diesel refinery are the top five equipment types and respectively they represent 24.5%, 19.3%, 14.9%, 9.7% and 8.9% of the pool. Moody's considers this a credit positive.
The deal has other key strengths, Moody's said, including Stonebriar's strong historical performance as servicer. The company has had 10 previous securitizations, actually, and have experienced zero net losses to date, with limited delinquencies.
Moody's is set to rate the A1 notes 'P-1'; the A2 and A3 notes 'Aaa'; the class Bs 'Aa2'' class Cs; 'A1'; the class Ds 'Baa1'; 'Ba3' to the class C notes; and 'B3' to the class F notes.
KBRA plans to assign 'AAA' to the A2 and A3 notes; 'AA' to the class B notes; 'A' to the class Cs; 'BBB' to the class D notes; 'BB' to the E notes and 'B' to the F class of notes.
