LeasePlan, a Dutch-based auto leasing firm to corporate and public-sector enterprises, is pooling a UK-based £545million securitization of corporate and government vehicle leases and residual value claims.
Bumper 8 (UK) Finance PLC has received initial ratings from Standard & Poor's and bond rating agency DBRS.
The deal will back three classes of notes, with tranche sizes to be determined. The floating rate Class A notes carrying 26.61% initial subordination and a provisional ‘AAA’ rating from DBRS and S&P.
The Class B notes – also floating rate – will have 22.02% subordination and an ‘AA (high’) DBRS rating and an 'AA' from S&P. Neither DBRS nor S&P is rating the fixed-rate Class C notes.
The collateral pool is nearly evenly split between £271.8 million of lease receivables and £236.9 million of RV claims. More than £36.3 million of the 40,588 contracts covering 24,883 cars, trucks and commercial vehicles include balloon payments.
The deal includes a one-year revolving period in which additional receivables and RV claims from the sale of underlying vehicles can be added.
The transaction will include a liquidity reserve account with a target amount equal to 0.56% of the Class A and B notes’ notional value; the floor is £2 million.
This is the first LeasePlan securitization to be rated. DBRS has rated other LeasePlan deals in The Netherlands and Germany.
The London offices of BNB Paribas and Societe Generale are lead arrangers.
As of August 2016, LeasePlan’s servicing portfolio consisted of 166,459 vehicles with associated agreements totaling £2.11 billion.