Volvo Financial Services plans to sell a total of $816 million of securities backed by a pool of fixed-rate transportation and construction equipment loans.
Volvo Financial Equipment LLC, Series 2015-1 will sell $196 million of class A-1 money market notes rated Prime-1’ that are due March 2016, and a total of $575 million, Aaa’ rated class A notes, offered over three tranches. The class A-2 notes are dues November 2017, the class A-3 notes are due June 2019 and the class A-4 notes are due January 2020. The notes benefit from credit enhancement of 9.25%.
At the junior level, $19 million of Aa2’ rated, class B notes, due March 2020 and $26.5 million of A2’ rated class C notes due November 2022 are offered. Moody’s Investor Service assigned preliminary rating to the deal.
The notes are backed by receivables consisting of loans made to commercial obligors located in the U.S. or a territory of the U.S. secured by trucking and construction equipment, and related collateral arising from such equipment.
VFS Series 2015-1 is the fifth term ABS transaction backed by similar collateral issued from the trust since 2010. The collateral pool consists of loans secured by trucking (82.9%) and construction (17.1%) equipment, both new (94.1%) and used (6.0%).
All of VFS’ past securitizations have either paid off in full or are currently on track to be paid off in full. J.P. Morgan Securities is the lead manager.