Macquarie Equipment Finance plans to issue $285.7 million in securities backed by commercial leases on various types of information technology, medical, and business-use equipment.
Credit Suisse is the lead underwriter.
Fitch Ratings expects to rate the $115 million money market fund note, F1+’. The notes are due September 2015.
The class A2 and A3 notes, which total $144.8 million, will be rated AAA’. The class A1 notes are due November 2016 and the class A3 notes are due July 2021.
At the junior level, the trust will offer $16.5 million of class B notes that will be rated A’ and $9.36 million of class C notes which will be rated BBB’. The notes are due July 2021.
The Equipment concentrations in 2014-A are stronger than the last Macquarie lease deal rated by Fitch, 2012-A. IT servers represent the largest equipment type in the pool at 12.90%, down from the 14.93% concentration of PC equipment in 2012-A. After servers, the largest concentrations belong to network equipment (11.57%), notebook PC (9.78%), IT storage arrays (7.08%), and desktop PC (6.74%).
Over half of the collateral pool is comprised of investment-grade obligors, however the transaction has a lower concentration of rated obligors (59%) compared to the last Macquarie lease deal rated by Fitch, 2012-A (71%).
The weighted average seasoning of 2014-A is 12 months. The average initial balance of the leases included in 2014-A is $122,890. However, many obligors have multiple leases; as a result, the average initial obligor balance is $309,727. Fitch said that this represents a decline from $882,336 per obligor in 2012-A. “The decrease is attributable to a more diversified pool in regards to the total number of obligors, which has increased to 1,007 from 312 in 2012-A,” according to the presale.
