First-time issuer Universal Compression, Inc. was set to price the first deal backed by leases on natural gas compressors the ABS market has seen to date. The $200 million, 144A deal, Universal Funding 2005-1, was being led by Wachovia Securities but had yet to price as of press time.
The single-tranche, Ambac-wrapped deal has a fourteen-year average life and was rated triple-A by Moody's Investors Service and Standard & Poor's. Wachovia Officials declined to comment, as the deal is private and had not yet priced. As of last Thursday, the 7.2-year A class notes were offered at 33 to 35 basis points over one-month Libor.