LEAF Capital Funding is marketing $310 million of securities backed by equipment leases, according to DBRS.
The securitization trust, LEAF Receivables Funding 11, LLC – Equipment Contract Backed Notes, Series 2016-1, will issue nine tranches of notes; four classes of senior notes are provisionally rated AAA and have credit support of 21%.
The notes are backed by a segregated pool of secured commercial loan contracts, commercial finance leases and fair-market value leases of several types of small- to middle-ticket equipment, including office equipment, medical, communications equipment, industrial equipment and computers.
LEAF, headquartered in Philadelphia, PA, serves equipment vendors in the small- to-mid-ticket equipment finance marketplace, specializing in information technology, telecommunications, office automation, light industrial, healthcare, and other business-essential assets.
This is the company’s sixth securitization; three others, the 2012-1, 2013-1 and 2015-1 transactions, are currently outstanding.
The collateral for this latest deal is similar to the 2015 transaction, with a weighted average contract balance of $12,728, weighted original term of 54 months and weighted average remaining term of 44 months. A smaller portion of leases (49%) are for office equipment, versus 59% for the 2015 transaction.