Stonebriar Closes Third Securitization Transaction for $374MM

Stonebriar Commercial Finance closed SCFET 2017-2, a $374 million asset-backed securitization transaction. SCFET 2017-2 marks the third securitization transaction that Stonebriar has closed in the last 18 months, bringing total assets securitized to approximately $1 billion across Stonebriar’s four distinct business platforms.

SCFET 2017-2 closed on November 22, 2017 and is secured by a $387 million portfolio of commercial equipment loans and leases across rail, aviation, marine transportation, energy, real estate and manufacturing. The A and B tranches of the transaction received ratings of A2 and Baa3 from Moody’s Investors Service and A+ and BBB from Kroll Bond Rating Agency, respectively.

Credit Suisse served as sole structuring agent and joint bookrunner on SCFET 2017-2. Bank of America Merrill Lynch and Goldman Sachs also served as joint bookrunners. Stonebriar will continue to service the assets, with US Bank as backup servicer.

Dave B. Fate, president and CEO of Stonebriar, said, “We are pleased to have strong demand from a diverse group of domestic and international institutional investors. Our 2017-2 transaction continued to expand the SCFET investor base, with 16 repeat investors and 7 new investors, and included assets from four of Stonebriar’s current business platforms – general equipment, rail leasing, aviation capital and nonbank lender. Continued strong performance and increasingly diversified collateral pool helped secure single A ratings from both Moody’s and Kroll and are a testament to Stonebriar’s experienced team in building a high-quality portfolio of assets.”

Jon-Claude Zucconi, managing director for Credit Suisse, said, “Stonebriar’s third large-ticket equipment platform securitization, structured and led by Credit Suisse, included rail and corporate aircraft collateral. Twenty-three investors including seven new buyers participated in the transaction including money managers, insurance companies and pension funds. We received strong demand for these securities, pricing the Class A tranche at a 150bp spread to swaps, more than 50bp tighter than February’s 2017-1 issuance and 125bp tighter than the inaugural 2016-1 offering in June 2016.”

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