Transaction Overview
The SCF Equipment Leasing 2021-1 LLC and SCF Equipment Leasing Canada 2021-1 Limited Partnership(“SCF 2021-1”) transaction is secured by: (1) a portfolio of equipment lease contracts and equipment loan contracts (together, the “Contracts”), together with interests in the related equipment and other collateral; (2) certain portfolio interest certificates evidencing 100% beneficial interest in a portfolio of leases of titled motor vehicles and the related equipment; and (3) equity interests in certain limited purpose entities formed to own aircraft leases and the related aircraft.
The underlying Contracts are collateralized by corporate aircraft as well as essential use assets, such as rail, transportation and manufacturing equipment, for usein a variety of industries. All of the Contracts were directly or indirectly originatedby Stonebriar Commercial Finance LLC (“SCF” or the “Company”) or Stonebriar Commercial Finance Canada Inc. (“SCF Canada”). The aggregate discounted contract balance (the “ADB”) of the portfolio is approximately $1.01billion.
The portfolio is comprised of 145 Contracts to 64 obligors.The average Contract balanceis approximately $7million and the average exposure to an obligor is approximately $15.8million. The maximum exposure to an obligor is approximately $222million or approximately 22% of the ADB.
The securitization is based on the projected equipment loan and lease cash flows discounted at the respective Contract’s internal rate of return (“IRR”).The weighted average IRR is 8.24%.The Notesbenefit from creditenhancement in the form of overcollateralization, excess spread, a reserve account and, for senior notes,subordination. [KBRA ]