Susquehanna Bancshares in Lititz, Pa., has scrapped its plan to do a commercial loan securitization this year.

But the company said it would be back in the market with an auto lease deal next year.

Susquehanna had expected to do two securitizations this year. It issued a $268 million auto lease deal in February and planned to put out a commercial loan deal in the fourth quarter.

However, William Reuter, Susquehanna's president and chief executive officer, told analysts on a July 25 conference call that its liquidity had improved, making another securitization this year unnecessary.

"We've said pretty consistently the one-time gains in these securitizations are nice, but the real reasons we do them are for balance sheet management, liquidity, management of capital and credit diversification," Reuter said.

"So as much as I think we'd like to do one in the fourth quarter, it's really not necessary for us to do one at this point in time."

Drew Hostetter, Susquehanna's chief financial officer, said during the call that the company's plan for next year includes at least one securitization of auto leases and possibly one of home equity lines of credit.

Susquehanna has been a regular auto lease issuer for several years.

Its February deal, Susquehanna Auto Lease Trust 2007-1, had JPMorgan Securities, Barclays Capital, Morgan Stanley, and UBS, as managers, according to the ASR Scorecard database.

Susquehanna also issued a $311.9 million auto lease deal in March of last year, Susquehanna Auto Lease Trust 2006-1. JPMorgan had been the sole manager on that one.  

 

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