NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns final ratings to two note classes of NMEF Funding 2015-A, LLC. The notes are newly issued asset-backed securities backed by a portfolio of equipment leases and loans.
As part of the transaction, North Mill Equipment Finance LLC (“North Mill” or “the Company”) will transfer special unit of beneficial interest certificates (“SUBI Certificates”) to a bankruptcy-remote special purpose vehicle as collateral for the offered notes. The SUBI Certificates evidence the interests in the NM Credit 2015-A SUBI and ESEF 2015-A SUBI, which represent the entire beneficial interest in certain equipment leases and loans (“Equipment Contracts”). The collateral consists of all contractual payments associated with the Equipment Contracts and the related equipment. The transaction benefits from credit enhancement in the form of excess spread, overcollateralization and a reserve account.
At closing the Equipment Contract collateral balance is approximately $97.6 million out of an approximate expected aggregate discounted balance of $125 million. The balance of the Equipment Contracts will be funded during a 180-day period following the closing date. The current portfolio is comprised of 2,809 Equipment Contracts with a weighted average monthly payment of $1,492 and weighted average remaining term of 40.5 months. Eligibility criteria exist for Equipment Contacts funded after the closing date to mitigate against material deterioration in the collateral credit quality of the portfolio
KBRA analyzed the transaction using the Equipment Lease & Loan Methodology published on June 30, 2012. KBRA also conducted an on-site operational review of North Mill at its South Norwalk, CT headquarters in February 2015.
Final Ratings Assigned: NMEF Funding 2015-A, LLC
|Class||Rating||Initial Principal Balance|
|A Notes||A (sf)||$112,575,000|
|B Notes||BBB (sf)||$9,380,000|
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