KBRA Assigns Ratings to Verdant Receivables 2024-1 LLC
29 May 2024 | New York
KBRA assigns ratings to five classes of notes issued by Verdant Receivables 2024-1 LLC (Verdant 2024-1), an equipment ABS transaction.
Verdant Commercial Capital, LLC (Verdant or the Company) is a small and medium-ticket independent equipment finance company founded in July 2017 and headquartered in Cincinnati, Ohio. Verdant employs a vendor model generating originations through relationships with original equipment manufacturers, distributors and resellers. Verdant 2024-1 represents the Company’s second public equipment ABS transaction. The Verdant 2024-1 transaction is secured by a portfolio of equipment lease and loan contracts, together with interests in the related equipment.
As of April 30, 2024 (the Statistical Calculation Date), the pool of equipment contracts backing Verdant 2024-1 has an aggregate discounted contract balance of $319.65 million, based on the statistical discount rate of 8.75% (Statistical Asset Pool). As of May 29, 2024, the initial cut-off date, the aggregate discounted contract balance is approximately $319.65 million, based on the discount rate of 8.75%. The aggregate discounted contract balance represents the aggregate present value of the expected cashflows on each contract, discounted at the individual contract rate. Verdant 2024-1 will issue five classes of notes, including a short-term money market tranche (the Notes) totaling $307.67 million. The Notes benefit from credit enhancement in the form of overcollateralization, a cash reserve, subordination benefiting senior classes, and excess spread.
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