LEAF Commercial Capital is planning to sell its $250 million securitization of small ticket equipment loans and leases sponsored by LEAF Capital Funding, LLC, according to a Moody's Investors Service Report.
The deal LEAF Receivables Funding 8 Equipment Contract Backed Notes, Series 2012-1 is backed by various equipment loans and leases comprising primarily office equipment such as copiers as well as technology, telecommunications and industrial equipment.
The transaction is a securitization of small ticket equipment loans and leases sponsored by LEAF Capital Funding, a wholly owned subsidiary of LEAF Commercial Capital.
Moody's will rate the deal. The class A-2, A-3 and A-4 notes will be rated 'Aaa'. The class B notes will be rated 'Aa2' and the class C notes will be rated 'A2'. Moody's will also rate the class D notes 'Baa2' and the class E-1 and E-2 notes 'Ba2', the agency said in a presale report today.
Assured Guaranty Corp. will act as financial guarantor for the class A notes. Credit enhancement will also include overcollateralization that is initially 4.00%, a non-declining reserve account that is funded at 1.5% of original collateral balance, subordination in the case of the class A, class B, class C, class D, and class E-1 notes, and excess spread, the Moody's presale report said.
The credit enhancement has been sized without considering the financial guarantee policy on the deal.
This is not the first time that a LEAF deal has been wrapped by Assured. The firm's previous deal LEAF Receivables Funding 7 was also guaranteed by the bond insurer.