KBRA Assigns Preliminary Ratings to Wingspire Equipment Finance 2024-1 LLC
15 Aug 2024 | New York
KBRA assigns preliminary ratings to five classes of notes issued by Wingspire Equipment Finance 2024-1 LLC (WEF 2024-1), an equipment ABS transaction.
WEF 2024-1 represents the first equipment ABS transaction sponsored by Wingspire Equipment Finance LLC (WEF or the Company). Founded in 2017 as Liberty Commercial Finance LLC, WEF is a mid-to-large ticket equipment finance company headquartered in Tustin, California. WEF is majority-owned by Wingspire Capital Holdings LLC, a portfolio company of Blue Owl Capital Corporation (rated ‘BBB’ by KBRA), which is a specialty finance, business development company that provides direct lending solutions to middle-market companies in the U.S. As of July 31, 2024, the net asset balance of WEF’s portfolio totaled $333.1 million across 197 contracts and 95 obligors. The WEF 2024-1 transaction is secured by a portfolio of equipment lease and loan contracts.
The aggregate securitization value (ASV) of the portfolio is approximately $231.55 million as of the July 31, 2024 initial cut-off date (Cut-off Date ASV). The contract pool yield of the underlying contracts is approximately 10.65%. The portfolio is comprised of 88 contracts to 55 obligors. The average securitization value by contract is approximately $2.63 million and the average exposure to an obligor is approximately $4.21 million. The weighted average original and remaining contract terms are 52 months and 45 months, respectively. The maximum exposure to an obligor is approximately $13.5 million or approximately 5.84% of the aggregate net investment amount. WEF 2024-1 will issue 5 classes of notes (the Notes), totaling $201.45 million. The Notes benefit from credit enhancement in the form of overcollateralization, excess spread, a reserve account, and subordination for senior classes.
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