Two insurance policies and a backstop guaranty have been structured into the Susquehanna Bancshares auto lease transaction, to quell investor concerns over vicarious liability laws currently in effect in New York, which accounts for 66% of the Susquehanna lease portfolio. As a result, the transaction has seen healthy investor interest and is on track to price early this week at or through price guidance, syndicate sources said.
Led by Barclays Capital, the $233 million Rule 144A 2003-1 deal - just the second ever securitization for Susquehanna - offers three triple-A senior traches as well as single-A and triple-B subordinates. Subordination totals 12.5%, and there is also a 3% reserve account. Susquehanna last tapped the market in December 2000, with a $150 million deal via Credit Suisse First Boston.