Kroll Bond Rating Agency assigned preliminary ratings to eight classes of notes issued by Granite Park Equipment Leasing 2023-1 LLC (Granite Park 2023-1), an equipment ABS transaction. Granite Park 2023-1 represents Granite Park Holdings’ first equipment ABS and the 11th equipment ABS backed by collateral originated and serviced by Stonebriar Commercial Finance. While Granite Park is not a subsidiary or affiliate of Stonebriar Commercial Finance, the company was formed in November 2022 to make investments in and securitize such investments with respect to equipment contracts originated by Stonebriar Commercial Finance and its affiliates. Stonebriar Commercial Finance is the servicer for the collateral backing Granite Park 2023-1.
Granite Park 2023-1 will issue nine classes of notes, including a short-term money market tranche. Credit enhancement includes a reserve account, overcollateralization, subordination for senior classes and excess spread. The aggregate discounted contract balance (the ADB) of the portfolio is approximately $406.09 million as of July 31. The ADB is based on the projected equipment loan and lease cash flows, as well as the residual value of the related equipment, discounted at the respective contract’s implicit rate of return. The weighted average IRR is 10.58%. The portfolio is comprised of 34 contracts to 24 obligors. The average contract balance is approximately $11.94 million and the average exposure to an obligor is approximately $16.92 million. The maximum exposure to an obligor is approximately $50.87 million or approximately 12.53% of the ADB.
