Germany-based Grenke Leasing has come to market with its first public term securitization of information technology and equipment lease receivables. Goals 2006-1 is a ?250 million ($319 million) floating-rate asset-backed securities deal. Grenke is servicing, selling and originating the receivables. Deutsche Bank and WestLB are joint lead managers. Calls to Grenke and the managers were not returned by press time.
The fully amortizing deal follows a standard true sale structure, with the issuer financing the purchase of the receivables. The cash reserve has a lock-out period of 12 months. The leasees are all small-to-medium-sized firms based in Germany. The equipment includes copy and fax machines, as well as industrial machinery and office furniture such as desks and chairs.
Andrea Gutermuth, credit analyst at Standard & Poor’s, said transactions like this are rare as small leasing firms tend to use asset-backed commercial paper, because companies require a significant volume for a term securitization. “Compared with auto loans, the credit enhancement is higher because recoveries for equipment leasing is lower,” she said. Until now, the Baden Baden-based company has only done ABCP transactions.