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April 16, 2019

DLL closes $500m securitisation transaction

Multinational vendor finance company DLL has closed a securitisation transaction in the United States for $500m (€443m).

By Christopher Marchant

Multinational vendor finance company DLL has closed a securitisation transaction in the United States for $500m (€443m).

This is the fifth asset-backed securitisation (ABS) transaction (and fourth in United States) for DLL since November 2017 totaling over $3.3bn.

This securitisation is backed primarily by a portfolio of agricultural equipment loans and leases in the United States. According to DLL the transaction included only AAA notes rated A1+/P1 or AAA / Aaa by Standard & Poor’s and Moody’s ratings agencies respectively.

“We are pleased with continuing of expansion of our investor base in our ABS transactions which offer diversification and consistency in our business”, said Matthew Goldenberg, DLL vice president for capital markets.

“DLL continues to implement our plan of diversifying our funding sources and I am proud of our achievements to date” said Marc Dierckx, DLL chief financial officer and member of the executive board.

Previous securitisations 

In March DLL closed an equipment lease securitisation transaction in the United Kingdom for £306m, the first UK (ABS) transaction with equipment lease exposure in five years.

This is the first public ABS transaction issued by DLL in Europe. The transaction will be listed at the ISE (Irish Stock Exchange), and the notes are backed by a pool of UK equipment lease receivables originated by DLL’s UK branch, De Lage Landen Leasing.

This pool consists of hire purchase agreements, operational leases and financial leases, mainly in the agriculture and materials handling sectors. The final book finished at £750m, an oversubscription of 2.5 times.

Last November DLL has closed a 2018-2 ABS securitisation transaction in the United States in excess of $1bn (€880m). This is the largest equipment finance securitisation in recent history in US markets.

The transaction follows two successful DLL securitisations in November 2017 for $501.5m and in May 2018 for $824.4m. Matthew Goldenberg, DLL vice president of US capital markets, said: “We are pleased with the strong execution and expanded investor participation in our largest transaction to date. This successful transaction is an endorsement by investors and rating agencies of the strong and consistent results of our portfolios.”

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