Kroll Bond Rating Agency assign preliminary ratings to four classes of notes issued by Dext ABS, 2021-1, an equipment asset-backed securitization transaction from Dext Capital.

Dext Capital, which was founded in 2018 and is headquartered near Portland, OR, is an independent equipment finance company focused primarily on financing medium- and small-ticket medical equipment. This transaction represents the company’s second equipment ABS transaction.

As of Oct. 29, the pool of equipment contracts backing Dext ABS 2021-1 has a discounted pool balance of $158.83 million based on a 6.25% discount rate. Dext ABS 2021-1 will issue four classes of notes. Credit enhancement is comprised of overcollateralization, a cash reserve, subordination benefiting senior classes and excess spread. The overcollateralization is subject to a target equal to 8.25% of the initial pool balance and is non-amortizing after reaching this target level. The reserve account is funded at 1.8% of the initial pool balance and is non-amortizing.