Kroll Bond Rating Agency (KBRA) assigned preliminary ratings to four classes of notes issued by North Mill Equipment Finance funding 2022-B, LLC (NMEF 2022-B) in an equipment ABS transaction.

NMEF 2022-B represents North Mill Equipment Finance’s (North Mill) sixth equipment ABS. North Mill, now Equilease Financial Services, is an independent equipment finance company created in 2012 when Colford Capital Holdings acquired it. InterVest Capital Partners (formerly Wafra Capital Partners) acquired North Mill from Colford Capital Holdings in August 2018.

NMEF 2022-B is backed by a pool of equipment loans and leases. The statistical discounted pool balance (Statistical Pool) totals $266.9 million and represents the projected cash flows of the equipment contracts discounted at a rate of 7.80%.

As of the initial cutoff date, the discounted contract value will be at least $302.87 million and the initial pool characteristics are expected to be substantially like the Statistical Pool. The total collateral may increase by up to a $101.1 million (25% of the total pool balance at the end of the prefunding period) through the addition of equipment contracts during the three-month prefunding period.

NMEF 2022-B will issue four classes of notes, including a short-term tranche. Credit enhancement includes excess spread, a reserve account, overcollateralization and subordination for senior classes. The overcollateralization is subject to a target equal to 20.5% of the current pool balance and a floor equal to 0.50% of the initial pool balance, accounting for any prefunding that occurs. The reserve account is funded at 1.00% of the initial pool balance and is non-amortizing.