Stonebriar Commercial Finance has allocated all bonds, confirmed pricing and is set to close its fifth commercial equipment asset-backed securitization, SCFET 2019-1, a $650 million ABS issuance with top tranches expected to be rated triple A.
SCFET 2019-1 will be secured by a portfolio of commercial equipment loans and leases across a variety of asset classes including rail, aviation, marine transportation, energy, real estate, and manufacturing.
The A-1 and A-2 tranches of the transaction are expected to receive ratings of “Aaa” and “AAA” from Moody’s Investors Service and Kroll Bond Rating Agency, respectively.
Merrill Lynch, Pierce, Fenner & Smith acted as lead structuring agent and joint bookrunner on the securitization. Credit Suisse Securities acted co-structuring agent and joint bookrunner. Stonebriar will continue to service the assets with U.S. Bank as backup servicer.
Dave B. Fate, Stonebriar president and CEO, stated, “Since June 2016, Stonebriar will have executed five equipment securitization transactions totaling over $2.2 billion, attracting demand from a diverse group of domestic and international institutional investors. SCFET 2019-1 will be our largest ABS issuance to date, delivering the most cost-effective, long-term financing we have achieved thus far.
“In connection with the SCFET 2019-1 transaction, we continue to expand the SCFET investor base with a mix of repeat and new investors across the capital structure, including some of the largest global asset managers. SCFET 2019-1 will include assets from four of Stonebriar’s current business platforms – general equipment, aviation capital, rail leasing and real estate – including a portion of our Canadian portfolio. Continued strong asset performance and an increasingly diversified collateral pool have been key factors in securing our second ABS with ratings expected to be triple A and is a testament to Stonebriar’s ability to build and manage a strong portfolio.”