KBRA Assigns Preliminary Ratings to Verdant Receivables 2024-1 LLC
16 May 2024 | New York
KBRA assigns preliminary 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 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%. The aggregate discounted contract balance represents the aggregate present value of the expected cashflows on each contract, discounted at the individual contract rate. The initial cut-off date will be May 29, 2024. Verdant 2024-1 will issue five classes of notes, including a short-term money market tranche 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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