Volvo and GreatAmerica Leasing priced their equipment lease-backed securities this week, bringing year-to-date issuance for the sector to $2.9 billion.
The $679-million equipment-loan deal from Volvo consists of six tranches. According to an Interactive Data report, the class A2, triple-A rated notes priced at 27 basis points over the Eurodollar synthetic forward curve (EDSF). The triple-A rated, class A3 notes priced at swaps plus 30 basis points and the single-A rated, class C notes priced at swaps plus 85 basis points.
JP Morgan and Royal Bank of Scotland arranged the transaction, which securitizes equipment loans backed by commercial trucks and construction equipment.
GreatAmerica Financial Services also priced its $423.25 million securitization backed by small ticket technology equipment leases and loans.
The Series 2014-1 deal includes three tranches of triple-A rated notes. The 1.25-year, class A2 notes priced at 33 basis points over EDSF. The 2.25-year class A-3 notes priced at swaps plus 38 basis points and the 3.36-year, class A-4 notes priced at swaps plus 55 basis points.
The double-A rated, class B notes priced at swaps plus 80 basis points. The single-A rated class C notes priced at swaps plus 105 basis points.
Wells Fargo is lead manager on the deal and Fitch Ratings has assigned the notes preliminary ratings.