Enterprise is prepping $650.1 million of bond backed by auto fleet leases, according to Fitch Ratings.
Enterprise Fleet Financing, LLC, Series 2015-2 will issue a $165 million tranche of money market notes and two tranches of notes with a preliminary AAA’ rating from Fitch: a $385 million tranche and a $110 million tranche. All three tranches benefit from credit enhancement of 8.65%.
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Smaller and largely unrated non-investment grade entities compose the assets, but the historical managed portfolio and securitized delinquencies and losses remain low, even during recessions.
The deal's obligor concentrations—its top and top five obligors account for 9.45% and 37.95% of the pool—are reigned in by WEF's focus on mission-critical essential use equipment.
The top 20 obligors account for 32.0% of the aggregate securitization value, while the top 10 represent 18.8%, a moderately elevated concentration.
Recent securitizations have seen a shift toward sport-utility, crossover utility and electric vehicles, as well as higher concentrations of the Kia and Genesis brands.
Loans with original terms longer than 60 months now represent 71.7% of the pool, up from 70.4% in the prior deal.
