Crossroads Equipment Lease and Finance, LLC priced its $161 million ABS backed by commercial truck loans to substantial demand, reducing its cost of borrowing and enabling expanded funding options. Crossroads closed the equipment securitization through Crossroads Asset Trust 2022-A.

This is Crossroads’ second securitization transaction, collateralized by a segregated pool of commercial loan contracts financing commercial trucks and trailers. The securitization included classes of notes rated AAA(sf) to BBB(sf) by DBRS, based on its analysis of the loan portfolio and Crossroads’ management team which has a solid track record of originating and servicing commercial equipment loans.

Following the solid performance of Crossroads Asset Trust 2021-A issued in February of 2021, Crossroads is utilizing the securitization market to supplement its funding strategy. Like 2021-A, the transaction had strong subscription levels and was syndicated to several investors. Credit Suisse acted as Sole Structuring Agent and Sole Bookrunner, with GreatAmerica Portfolio Services Group as the backup servicer of the transaction.

“Despite a challenging market environment, we experienced strong investor interest in our latest securitization. The transaction further strengthens our balance sheet, diversifies our funding sources, and mitigates our interest rate risk,” said Crossroads Chief Financial Officer Michael Jones.