Leaf Capital Funding will issue a $324.98 million equipement lased asset backed securitization called Leaf Receivables Funding 9, according to a Moody’s Investors Service presale report.
The ratings agency has assigned preliminary ratrings of ‘Prime-1’ to the money market fund tranche. The class A2 through A-4 notes are rated ‘Aaa’. These notes are wrapped with a financial guaranty policy by Assured Guaranty Corp.
According to Moody’s the triple-A notes also benefit from 19.9% credit enehancement that is sufficient the ratings on a standalone basis.
“The presence of Assured will provide strong support in the form of oversight that hes beyond the Class A insurance policy,” explained Moody’s. “This oversight… is a strong mitigant of operational risk for this transaction that is not directly linked to the financial strength rating of Assured.”
Credit Suisse, Guggenheim Securities and Natixis will act as the placement agents for the Rule 144A transaction.
The class notes are rated ‘Aa2’; the class C notes are rated ‘A1’; and the class D notes are rated ‘Baa1’.
The class E-1 and class E-2 notes that will be issued have been assigned rating of ‘Ba1’ and ‘Ba2’ respectively.
The notes are backed by fixed rate leases and commercial loan contracts and secured bu the related underlying equipement.