Crossroads Equipment Lease & Finance priced its $163 million ABS debut to solid demand, reducing its cost of borrowing and enabling expanded funding options. The ABS is backed by commercial truck loans. Crossroads closed the equipment securitization on Feb. 3 through Crossroads Asset Trust 2021-A.
This is Crossroads’ first securitization transaction. The transaction is collateralized by a segregated pool of commercial loan contracts financing commercial trucks and trailers. The securitization included classes of notes rated AAA(sf) to BB(sf) by DBRS, based on, among other things, analysis of the loan portfolio and Crossroads’ management team.
“The execution of this transaction indicates strong demand and solid portfolio performance,” Howard Shiebler, president of Crossroads Equipment Lease & Finance, said. “It gives us access to diversified capital sources to support our growth and shows our commitment to utilizing the term securitization market as an important liquidity source.”
The transaction was syndicated to several investors. Credit Suisse acted as sole structuring agent and sole bookrunner, with GreatAmerica’s portfolio services group as the backup servicer of the transaction.
“The strong interest in this transaction illustrates the substantial support we have earned from our investors,” Michael Jones, CFO of Crossroads Equipment Lease & Finance, said.
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