Vedder Thinking | News Vedder Price Counsels Client On $311.4 Million Asset Backed Securitization
March 1, 2017
Vedder Price announces that a team of Global Transportation Finance, Tax and Capital Markets Group attorneys has again advised Stonebriar Commercial Finance (Stonebriar), as originator and servicer, on its second equipment securitization transaction, SCFET 2017-1. The first deal, SCFET 2016-1, was Stonebriar’s inaugural securitization transaction, valued at $254 million and closed on June 27, 2016. This $311.4 million transaction, which closed on February 23, 2017, is secured by a portfolio of equipment lease and loan contracts comprised of 64 contracts to 30 obligors.
The single $254.9 million tranche of Class A notes was assigned an A1 rating by Moody’s, with a $15.78 million tranche of Class B notes rated Baa3, $15.6 million of Class C Notes rated Ba1 and a tranche of Class D Notes, valued at $25.1 million, rated B3. Kroll Bond Rating Agency assigned preliminary ratings of A+ to the Class A Notes, BBB to the Class B Notes, BB to the Class C Notes and B to the Class D Notes. The underlying equipment loan and lease contracts are collateralized by a broad mix of equipment including maritime, rail, aviation and energy assets.
The Vedder Price team included Capital Markets shareholders Marc Klyman and Kevin MacLeod, Tax shareholder Timothy O’Donnell, Global Transportation Finance shareholders Geoffrey Kass and Theresa Mary Peyton and associates Mark Ditto, Ryan Prindle, Jillian Greenwald and Matthew Gaspari. “Vedder Price continues to grow and successfully bridge capital markets with our deep mastery of complex financing of transportation and manufacturing assets,” said Mr. Kass. “The Vedder Price and Stonebriar teams worked cohesively through due diligence, negotiations and execution to a successful close.”