Stonebriar Commercial Finance has sponsored a securitization of equipment leases and loans, raising $871 million in asset-backed securities (ABS), as well as interests in the related equipment and other collateral.
Essential use assets in a range of industries, including marine, rail, aircraft, medical, energy and manufacturing collateralized the transaction's underlying contracts. Other forms of collateral—which originate in the U.S. and Canada—include portfolio interest certificates that are evidence of 100% beneficial interest in a portfolio of leases on titled motor vehicles and the related equipment, according to ratings analysts at Kroll Bond Rating Agency.
Some 54 contracts and 39 obligors, with an average contract balance of about $14.46 million, and the average exposure to an obligor is about $22.79 million. At the most, the transaction has an exposure to an obligor of about $63.82 million, or about 7.18% of the aggregate discounted contract balance (ADB).
Bank of America Merrill Lynch is manager on the deal, which issues notes through nine classes, according to the Asset Securitization Report's deal database. KBRA notes that the transaction includes one short-term money market tranche.
KBRA does not intend to rate the class G notes, it said. The rating agency says it intends to assign 'K1+' to the A1 notes; 'AAA' to the A2 and A3 notes; 'AA' to the class B notes; 'A' to the class C notes; 'BBB' to the class D notes; 'BB' to the class E notes; and 'B' to the class F notes.
The notes benefit from several forms of credit enhancement, including a reserve account, overcollateralization, subordination for senior classes, according to KBRA.
