Copying and distributing are prohibited without permission of the publisher.

Watermark

CCG prices equipment securitization

Equipment
By Fotios Tsarouhis
21 Aug 2018

Commercial Credit Group sold a $268m equipment-backed ABS on Tuesday in what has been a healthy sub-sector of the securitization market in 2018.

CCG Receivables Trust 2018-2 is backed by fixed rate commercial equipment loans and leases originated by the issuer. Loans comprise nearly 95.6% of the asset pool, with 47.51% of the loans and leases affiliated with transportation assets.

The $158m ‘A-2’ class was priced at 33bp over euro dollar spot forward. The ‘B’ and ‘C’ tranches were priced at 65bp over interpolated swaps and 105bp over interpolated swaps, respectively. 

BMO Capital Markets, JP Morgan and Wells Fargo are joint bookrunners on the deal.

Fitch Ratings assigned preliminary ratings to the notes in an August 15 presale, rating the $61m ‘A-1’ tranche F1 and assigning the ‘A-2’ tranche a AAA rating.

Fitch issued ratings of A and BBB for the $25.77 ‘B’ tranche and the $6.83m ‘C’ tranche, respectively.

Construction equipment accounts for 32.86% of the pool, with waste-related equipment and machine tools making up 9% and 8.88%, respectively.

This marks the ninth such deal from the Charlotte, NC-based manufacturing and infrastructure-focused lender.

CGG’s most recent securitization, a $306m privately placed deal, was closed in February.

Equipment-backed securitizations “represents a reliable flow of $10bn-$15bn of issuance per year,” according to a Wells Fargo report on consumer ABS published on Tuesday.

The report noted that equipment ABS’ market share has held steady, despite the departure of the beleaguered GE Capital as a major issuer, with the emergence of larger deals.

By Fotios Tsarouhis
21 Aug 2018