KBRA Assigns Ratings to NMEF Funding 2024-A, LLC
28 Aug 2024 | New York
KBRA assigns ratings to five classes of notes issued by NMEF Funding 2024-A, LLC (NMEF 2024-A), an equipment ABS.
NMEF 2024-A represents North Mill Equipment Finance LLC’s (North Mill or the Company) eighth equipment ABS. North Mill is an independent equipment finance company created in 2012 when Colford Capital Holdings LLC acquired and re-branded Equilease Financial Services (Equilease), which had been founded in 1957. InterVest Capital Partners Inc. (InterVest, formerly Wafra Capital Partners Inc.) subsequently acquired North Mill from Colford Capital Holdings LLC in August 2018. North Mill has historically specialized in transportation-related equipment contracts but in recent years diversified into an increased level of non-transportation originations including medical and franchise contracts. The Company’s portfolio totals $1.1 billion in outstanding equipment contract balance as of June 30, 2024.
NMEF 2024-A is backed by a pool of equipment loans and leases (Equipment Contracts). The statistical discounted pool balance (Statistical Pool) totals $459.89 million and represents the projected cash flows of the Equipment Contracts discounted at a rate of 8.00%. NMEF 2024-A will issue five classes of notes, including a short-term tranche. Credit enhancement includes a reserve account, overcollateralization (O/C), excess spread and subordination for senior classes. The O/C is subject to a target equal to 19.00% of the current pool balance and a floor equal to 0.50% of the initial pool balance. The reserve account is funded at closing at 1.00% of the initial pool balance and is non-amortizing.
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