Hewlett Packard returns with IT equipment ABS
Hewlett Packard Enterprise is readying its second securitization backed by loans and leases secured by IT equipment. Boosted by scarcity value, sources expect the small ticket equipment to offer better value than all other equipment asset classes this year.
The ‘A-1’ notes are expected to be priced at 0bp over interpolated Libor, while the ‘A-2’ notes are expected to be priced at 25bp-27bp over the euro/dollar spot forward. The ‘D’ tranche is expected to be priced at 95bp-100bp. Pricing expectations for the transaction are several points tighter