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LEAF Announces Securitization of $350 Million of Leasing Assets

Tuesday, June 21, 2016  
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LEAF Commercial Capital Inc. (LEAF) has announced the closing of a new securitization transaction, LEAF 2016-1, which was completed on May 26, 2016.

Through LEAF 2016-1, LEAF securitized a portfolio of approximately $350 million of commercial equipment leases and loans through the issuance of equipment contract-backed notes. LEAF is a programmatic ABS issuer and this transaction represents the fifth securitization that LEAF has sponsored since its recapitalization in 2011 and its largest single issuance to date. Overall, this is the eleventh ABS issuance by LEAF, as servicer, since 2007, all totaling approximately $2.3 billion. Eight of those issuances have been paid in full and three, including 2016-1, are still outstanding for about $600 million.

The portfolio of leases and loans encompasses a diverse array of equipment types, including office automation, telecommunications solutions, technology and network infrastructure, light industrial equipment and health-care-related equipment. LEAF's managed assets currently exceed $800 million.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC were joint book runners. Credit Suisse Securities (USA) LLC was also the structuring agent of the notes, with Guggenheim Securities LLC as co-manager. LEAF will continue to be the servicer of the assets. In this offering, LEAF issued nine fixed-rate classes of notes that were rated by Moody's and DBRS. The transaction achieved efficient triple-A pricing, with a larger proportional size of triple-A bonds than previously offered. This was a private offering made to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, by LEAF Receivables Funding 11 LLC, a wholly owned subsidiary of LEAF Commercial Capital Inc. A total of 25 unique investors participated in this transaction.

"We are very pleased with the execution of our latest and largest ABS deal," said Miles Herman, president and COO, LEAF. "We are gratified that our bonds continue to be well received by the marketplace. It is a testament to our past performance, as well as recognition of our continually evolving processes, products and technology, which keep LEAF at the forefront of the equipment finance industry. Our sustained stable performance, predictive results and forward-thinking approach, coupled with the liquidity to investors provided by a large and diverse investor base, will continue to support and extend LEAF's strong originations performance."

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