RBC Capital Markets is the lead underwriter on John Deere’s latest $1 billion securitization of equipment loans and leases. 

The issuer first filed documents on the deal, John Deere Owner Trust 2014-B,at the begging of July. However the preliminary prospectus did not indicate the size of the individual tranches or the exact name of the trust.

According to a presale report published today by Fitch Ratings, the money market tranche is sized at $317 million. The notes are due September 2015. They have a preliminary 'F-1' rating.The class A-2 notes will be split into $225 million of fixed-rate note and $100 million of floating-rate notes, due July 2017. Also offered are $283 million of class A3 notes due November 2018 and $84.9 million of class A-4 notes due June 2021. All of the notes have been assigned preliminary rating of ‘AAA’ and are structured with credit enhancement at 3.5%.

The notes will be backed by a pool of 20,174 U.S. retail installment sale and loan contracts secured by new and used agricultural and construction equipment originated by John Deere Capital Corporation. The pool contains 75.37% agricultural and 24.63% construction equipment. These concentrations are similar with those of JDOT 2014.

The weighted average seasoning of 12.12 months for JDOT 2014-B has increased from the past two transactions; it was 10.59 months in JDOT 2014 and 9.90 months in 2013-B.

JDOT 2014-B will be the 23rd U.S. public securitization issued by John Deere. The equipment manufacturer was last in the market in April with a $1 billion deal. The notes were backed by a pool of agricultural and construction equipment retail installment sale and loan contracts secured by new and used agricultural and construction equipment. Prior to that, it issued an $849 million equipment loan securitization in August of 2013.

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