Northpoint Commercial Finance is marketing its first ever securitization, a $216 million transaction backed by dealer floorplan receivables, according to DBRS.
The company was founded in February 2012 by the former executive management team of Textron Financial Distribution Finance Group (TFDFG). TFDFG’s ABS program, Textron Financial Floorplan Master Note Trust issued three term ABS transactions between 2005 and 2007.
Northpoint began lending in May 2012, using a similar approach and platform used by TFDFG. The company uses the same servicing system used at TFDFG; lends to the same dealer base, against the same product lines and for inventory from many of the remaining manufacturers in those product lines. The company currently has approximately $266.52 million principal receivables balance as of August 31, 2014, according to the presale report.
The receivables backing NCF Dealer Floorplan Master Trust, Series 2014-1 are originated in connection with dealer floorplan financing of recreational vehicles, marine, manufactured housing, trailer, outdoor power, power sports, technology, consumer electronics and appliances.
DBRS has assigned preliminary ratings to the deal. The trust plans to sells $200 million of AA’ rated securities; $5.88 million of A’ rated securities; $4.7 million of BBB’ rated securities and $5.8 million of BB rated securities. Credit enhancement for the Class A Notes, is 17.17% and the Class B notes have credit enhancement at 14.67%. The notes are due October 20, 2020.