Payments on a pool of open- and closed-end vehicle fleet lease contracts on primarily light-duty trucks, will secure $1 billion in securitized bonds from Enterprise Fleet Financing, series 2026-4.
EFF 2026-4 will sell the fixed-rate securitized notes through four tranches of class A1 through A4 notes, according to analysts at Fitch Ratings and S&P Global Ratings.
The transaction has one notable change from the EFF 2026-3 series: annual excess spread is estimated to be 4.94% pre-pricing, compared with 5.19% for the 2026-3 series, according to S&P.
As for the term on the notes, the A1, A2, A3 and A4 tranches, all considered senior, have legal final maturity dates of Oct 20, 2027, June 20, 2029, Nov. 20, 2030 and June 20, 2033, respectively, according to Fitch and S&P.
EFF 2026-4 is expected to close on October 30, with TD Securities acting as lead underwriter, analysts at both agencies said.
Enterprise Fleet Management (EFM), the sponsor, will also service the underlying contracts, the rating agencies said.
The collateral pool has 31,342 leases with 6,382 obligors, mostly composed of smaller, unrated non-investment grade entities Fitch said. Virtually all the leases are open end and on average, obligors have a balance of $166,526, while the leases have an average balance of $34,047. On a weighted average (WA) basis, the contracts have an original term of 51 months.
One particularly positive highlight, according to Fitch, is that EFM’s historical managed portfolio and securitized delinquencies and losses have been low, even during recessionary periods, Fitch said.
EFM’s managed portfolio is strongly diversified, with the top obligor representing 0.87% of initial securitized value. Government and city obligors represents the top obligor, by industry segment, with 5.49%. The top five industries represent 23.73% of the portfolio, similar to prior EFF transactions, Fitch said.
EFF 2026-4’s underlying assets also appear to be geographically diversified, with the largest state, Texas, representing 12.5% of the leases. California, Florida, Pennsylvania and Illinois account for 8.2%, 6.5%, 4.3% and 4.1%, respectively.
Fitch assigns ratings of F1+ to the A1 notes and AAA to the A2 through A4 notes, while S&P assigns A1+ to the A1 notes and AAA to the A2 through A4 notes.
