Avis Budget Car Rental (ABCR) is set to sell a 144A transaction called Centre Point Funding, LLC, Series 2012-2. The fixed-rate deal is worth $150 million and is backed by rental trucks, according to a Moody's Investors Service presale report. Moody's provisionally rated the transaction 'Baa2'.
ABCR, a unit of Avis Budget Group, is the owner and operator of Budget Rent A Car System, and Avis Car Rental Group. Via Budget Rent A Car, ABCR indirectly wholly-owns Centre Point and Budget Truck Rental (BTR). Under an operating lease, BTR is the lessee of vehicles from Centre and Centre's administrator, Moody's said.
The rating is mostly based on collateral, which is owned by Centre and leased to BTR for BTR's truck rental operations, comprising roughly 17,884 trucks that represent over 73.7% of BTR's total rental truck fleet as of July 31. Moody's also considered ABCR's presence as guarantor of BTR's lessee obligations and the minimum liquidity provided in the form of cash or letters of credit. The rating agency also looked at the legal structure and ABCR's and BTR's capabilities and expertise.
According to Bloomberg, the offering, which is set to price Tuesday afternoon, has Deutsche Bank Securities and Royal Bank of Scotland as joint bookrunners. Credit Agricole is serving as co-manager.
Meanwhile in CMBS, Kroll Bond Rating Agency (KBRA) today released its presale for a transaction called STRIPs, Series 2012-1.
The offering is a re-securitization of 64 commercial and multifamily interest only (IO) certificates from 61 different fixed-rate mortgage securitizations.
According to KBRA, the underlying collateral securities include 27 CMBS 1.0 IO certificates that were issued prior to 2009, 20 CMBS 2.0/3.0 IO certificates, 16 GNMA IO certificates, and a FNMA IO certificate.
All of the payment on the rated notes is reliant on the interest payments from the collateral securities that have no principal balance, the rating agency said. Considering this, it stressed the collateral's expected future payment stream under multiple scenarios that incorporated various assumptions about the default, loss, and recovery period of the loans underlying the trusts that issued the collateral securities.
Another CMBS this week is the UBS-Barclays Commercial Mortgage Trust 2012-C4, Commercial Mortgage Passthrough Certificates, Series 2012-C4.
The deal is backed by the Marcourt Net Lease Hotel Portfolio loan, a $140 million fixed-rate mortgage secured by the borrower’s fee simple interest in 12 limited service hotels located in nine states, according to a Securities and Exchange Commission (SEC) filing.
The filing indicated that most of the Marcourt Net Lease Hotel Portfolio properties are found at or near major airports. The Marcourt Net Lease Hotel Portfolio Loan has a 10-year term, an initial interest-only period of 24 months and afterwards amortizes on a 30-year amortization schedule, the SEC filing said.