NEF Holdings, a collaboration of Nations Fund I, and Nations Equipment Finance, is preparing its fourth securitization of loans and leases on extended to companies in a range of industries, including business services, food and related products and coal mining.
SLR Equipment Finance, series 2026-1, will issue $251.6 million in notes through six tranches of class A, B, C, D and E notes. The most senior tranche, the A1 notes, have a legal final maturity date of July 15, 2027 and the most subordinate class E notes matures on April 17, 2034, according to analysts at the Kroll Bond Rating Agency.
Classes A2, which will issue the bulk of notes, $149 million, and classes B, C and D all mature on April 15, 2033, according to KBRA.
NEF Holdings, which originated the 456 contracts in the pool, last issued securitization debt through the NEQ 2016-1 in February 2016, according to KBRA.
The current transaction benefits from initial overcollateralization of 8.00%, with a target overcollateralization amount equal to either 13.00% of the pool's aggregate securitization value or 8.00% of the securitization value as of the May 31, 2026 cutoff date, KBRA said.
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The deal's sequential repayment structure confers subordination to the deal, KBRA said. NEF Holdings also benefits from excess spread of about 9.64%, and a reserve account funded to represent 1.00% of the deal's initial securitization value.
The pool represents 225 obligors in the pool, and the top five account for 22.33% of the deal's securitization value, KBRA said.
The business services and food industries accounted for 11.5% and 10.6% of the deal's ABS value, KBRA said. Coal mining, oil and gas extraction and fabricated metal products.
KBRA assigns ratings of K1+ to the A1 notes; AAA, AA and A to the A2, B, C; and BBB and BB, respectively.
