NEF Holdings, a collaboration of Nations Fund I, and Nations Equipment Finance, is preparing its fourth securitization of loans and leases on extended to companies in a range of industries, including business services, food and related products and coal mining.
SLR Equipment Finance, series 2026-1, will issue $251.6 million in notes through six tranches of class A, B, C, D and E notes. The most senior tranche, the A1 notes, have a legal final maturity date of July 15, 2027 and the most subordinate class E notes matures on April 17, 2034, according to analysts at the Kroll Bond Rating Agency.
Classes A2, which will issue the bulk of notes, $149 million, and classes B, C and D all mature on April 15, 2033, according to KBRA.
NEF Holdings, which originated the 456 contracts in the pool, last issued securitization debt through the NEQ 2016-1 in February 2016, according to KBRA.
The current transaction benefits from initial overcollateralization of 8.00%, with a target overcollateralization amount equal to either 13.00% of the pool’s aggregate securitization value or 8.00% of the securitization value as of the May 31, 2026 cutoff date, KBRA said.
B of A Securities and Truist
Securities are initial note purchasers, KBRA said.
The deal’s sequential repayment structure confers subordination to the deal, KBRA said. NEF Holdings also benefits from excess spread of about 9.64%, and a reserve account funded to represent 1.00% of the deal’s initial securitization value.
The pool represents 225 obligors in the pool, and the top five account for 22.33% of the deal’s securitization value, KBRA said.
The business services and food industries accounted for 11.5% and 10.6% of the deal’s ABS value, KBRA said. Coal mining, oil and gas extraction and fabricated metal products.
KBRA assigns ratings of K1+ to the A1 notes; AAA, AA and A to the A2, B, C; and BBB and BB, respectively.
