Strong third party participation signals improved market demand for ABS
MONTREAL, Jan. 28 /CNW Telbec/ - The Business Development Bank of Canada (BDC) is pleased to announce that it has completed the purchase of approximately $91 million in Class A-2a notes from Fleet Leasing Receivables Trust ("FLRT") as part of its 2010-1 issuance. FLRT is a special purpose trust which purchases commercial fleet leases originated by PHH Vehicle Management Services Inc. (PHH VMS) or its affiliates. The Class A-2a Notes qualified for this transaction under the Small Enterprise Tranche of the Canadian Secured Credit Facility (CSCF).
FLRT's 2010-1 senior notes totalled $363 million and are backed by a diversified pool of commercial fleet lease receivables. The transaction met all of the eligibility criteria under the CSCF program, including two AAA ratings. In addition to BDC's investment, there was strong interest from other investors, with third party participation of approximately $126 million in the A-1 notes, and $146 million in the A-2b notes.
"We are pleased to have been able to finalize yet another transaction under the CSCF. From a securitization perspective, we are pleased that FLRT will now be a new issuer in the term market in Canada," said Paula Cruickshank, Vice-President of Securitization at BDC. "We are encouraged by the strong third party interest in this transaction, and believe it signals improved market demand for ABS securities in Canada."
In Canada, PHH VMS provides vehicle leasing and fleet management services, including fuel and maintenance cards and accident management services. PHH VMS's primary clients include over 400 companies and government agencies in Canada. The net proceeds from the issuance of the A-2a notes will provide PHH VMS with additional capacity to fund the purchase and leasing of vehicles to its clients.
A total of $12 billion was allocated to the CSCF in the 2009 federal budget, and is being made available to help support financing for the purchase of vehicles and equipment.
BDC is Canada's business development bank. From more than 100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. From more information, visit www.bdc.ca .
SOURCE Business Development Bank of Canada
For further information: For further information: Johanne Bissonnette, Media Relations Manager, BDC, (514) 283-7929, Johanne.email@example.com