Esoteric deals are gaining traction with drug and container ABS currently in the market.
Drug Royalty LP 1, a subsidiary of Toronto-based DRI Capital, is in the market with a $200 million securitization of 18 drug royalty streams generated from the global sales of 14 drugs.
The deal, Series 2011-1, is comprised of Class A-1 floating-rate notes and Class A-2 fixed-rate notes, which rank pari-passu for all purposes.
According to a report from Moody's Investors Service, which is rating the deal, the portfolio includes some of the world's leading pharmaceutical companies. It has been assigned a provisional rating of 'Baa2(sf)' to the transaction.
In early October the issuer cancelled a $155 million term loan securitization to refinance debt because of market conditions, according to a Bloomberg report. Macquarie Group was arranging the five-year transaction.
Drug Royalty LP is a bankruptcy-remote limited partnership that issues notes under a master indenture.
Another esoteric deal in the market is CLI Funding V LLC – Series 2011-2. As previously reported by ASR, shipping container company SeaCube Containers is looking to tap the market for a second time this year.
Standard & Poor's has rated the $250 million deal 'A.' According to a presale from S&P, the deal is collateralized by a roughly $523 million (net book value) portfolio that has 115,340 containers and a $10 million prefunding account.
CLI Funding V LLC has the right to lease revenues from the portfolio and any residual cash flows from the sale of containers.
The seller on the transaction is Container Leasing International doing business as SeaCube Containers. Book-runner and structuring agents on the offering are Wells Fargo Securities and Deutsche Bank Securities. Meanwhile, the offering's trustee and transition manager U.S. Bank.