In Wingspire Equipment Finance's (WEF) third securitization of equipment lease and loan contracts, the company will raise $407 million in securitized bonds through the 2026-1 series.
The collateral pool contains 211 contracts associated with 63 obligors, and the notes will be issued from a series of six tranches of notes, classes A through E. The most senior tranche of notes, which Kroll Bond Rating Agency rates K1+, have a legal final maturity date of Oct. 20, 2027.
The rest of the notes in the structure are slated to mature on Jan. 20, 2034. The two most senior notes, A1 and A2, benefit from initial hard credit enhancement of 34.90%, KBRA said.
Wingspire 2026-1's deal structure includes overcollateralization at a level of 7.10% of the $438.17 million aggregate securitization value (ASV), KBRA said. The deal includes excess spread of about 2.21% per year as of the Aug. 31, 2026 initial cutoff date.
At closing, Wingspire 2026-1 had a reserve account funded to equal 1.00% of the cut-off date ASV. KBRA notes that the reserve account is not amortizing and grows as a percentage of the current ASV as the pool pays down.
Manufacturing and IT, technology and telecom, comprise the majority of the underlying equipment lease types, for a total of 64.57%. Further, titled vehicles, healthcare, and construction and material handling equipment account for the other top five segments of the pool, with 16.57%, 9.55% and 4.94% of the pool, respectively.
The rating agency noted that the pool appears to be concentrated among its top obligor and top five obligors account for 9.45% and 37.95% of the pool of 63 obligors, respectively. Yet those concentrations are reigned in by WEF's focus on mission-critical essential use equipment, KBRA said.
KBRA assigns ratings of AAA, AA, A, BBB and BB to classes A2, B, C, D and E, the rating agency said.
