Assured Guaranty Corp. (AGC) (NYSE: AGO) has guaranteed four classes of notes issued by LEAF Receivables Funding 9, LLC. The 2013-1 notes are backed by small ticket equipment lease and loan contracts originated and serviced by LEAF Commercial Capital, Inc. (LEAF), an equipment leasing and finance company based in Philadelphia. Credit Suisse Securities (USA) LLC was the book runner and structuring agent of the notes with Guggenheim Securities, LLC as joint lead and Natixis Securities Americas, LLC as co-manager. AGC guaranteed $273 million of the $325 million issued.
In part due to AGC’s role as guarantor, the four classes of wrapped notes received the highest structured finance ratings from Moody’s: P-1(sf) for the short-term Class A-1 Notes and Aaa(sf) for the medium-term A-2, A-3 and A-4 Notes. In addition to lowering the all-in cost of capital, the insurance helped add to and diversify LEAF’s funding sources.
This was LEAF’s third consecutive term securitization wrapped by AGC. “LEAF has a strong origination and servicing platform and experienced management team,” said Paul Livingstone, Senior Managing Director of AGC’s Structured Finance department. “We’re pleased that our financial guaranty, including our strong surveillance capabilities, allow LEAF to achieve the highest structured finance ratings possible.”
According to Miles Herman, LEAF’s President and COO, “Assured Guaranty’s participation in this transaction benefited both LEAF, from an execution and pricing standpoint, and our investors, who benefit from the strong underwriting and oversight that AGC provides.”
In addition to the LEAF transaction, AGC's Structured Finance team has been active with secondary market wraps and remains committed to the consumer and commercial ABS space in the subprime auto, equipment, container, timeshare and aircraft sectors, among others.
AGC is a Maryland-domiciled insurance company regulated by the Maryland Insurance Administration and licensed to conduct financial guaranty insurance business in all 50 states of the United States, the District of Columbia and Puerto Rico. AGC commenced operations in 1988. AGC is a wholly owned, indirect subsidiary of Assured Guaranty Ltd. (AGL), Bermuda-based holding companies whose shares are publicly traded and are listed on the New York Stock Exchange under the symbol AGO. AGL, through its operating subsidiaries, provides credit enhancement products to the U.S. and global public finance, infrastructure finance and structured finance markets.