Porsche Financial Services has increased exposure to some of its most expensive nameplates in its latest lease securitization.
The $505 million Porsche Innovative Lease Owner Trust 2015-2 pools leases to borrowers with a strong WA FICO of 789, consistent with recent securitized pools, according to Fitch Ratings. Nearly two-thirds of the leases have terms of 36 months, they are seasoned by an average of 4.9 months their maturities are spread out, lessening the risk that they will be worth less than expected at the end of their terms.
This is only the fourth lease securitization to include contracts on Bentley and Lamborghini vehicles, and they comprise 18% of the pool, up from 14% in Porsche’s prior transaction. What little data there is on the residual value of such high end cars suggests that they can be more volatile; Fitch has accounted for this in the derivation of its residual loss assumption.
The trust will issue $89 million of money market notes rated ‘F1’ by Fitch Ratings and three tranches of notes with preliminary ‘AAA’ ratings: $170 million of notes with a final maturity of June 2018, another $170 million of notes due January 2019, and $76.3 million of notes due October 2021. All four tranches benefit from credit enhancement of 15%.
Barclays is the lead underwriter.