Kroll Bond Rating Agency assigned preliminary ratings to six note classes of Ascentium Equipment Receivables 2017-1 Trust. The notes are newly issued asset-backed securities backed by a portfolio of equipment leases and loans.
This transaction is Ascentium Capital’s eighth securitization supported by small and mid-ticket general equipment. The transaction features a payment waterfall, whereby all collections after expenses and interest payments will pay down principal, until the target overcollateralization (10.25%) as a percentage of the current collateral balance is reached.
As of September 30, 2017, the collateral consists of equipment loans and leases totaling approximately $218.8 million. The balance of the collateral is subject to certain eligibility criteria and will be funded during a 60-day period following the closing date and will total approximately $31.9 million. The discounted balance for the collateral as of the statistical calculation date is based on the projected equipment loan and lease cash flows discounted at a rate of 4.75%.
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