KBRA Assigns a Preliminary Ratings to NP SPE IX LP, Series 2019-1

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to the Class A-1 Notes, Class A-2 Notes and Class B-1 Notes of NP SPE IX LP, Series 2019-1, a railcar leasing securitization.

This is the first transaction issued out of the NP SPE IX LP Trust. The railcars in the portfolio (the “Portfolio Railcars”) and the related leases will be acquired by the Issuer from NP SPE VIII LP, a wholly owned subsidiary of NP SPE VIII Holdings LP.

The portfolio consists of 1,820 non-tank railcars with an aggregate fair market value (“FMV”) of $138.1 million, and 1,669 tank railcars with an aggregate FMV of $177.0 million. The portfolio is currently 99.7% utilized, with the majority of leases on full-service leases. The Issuer will be responsible for covering maintenance costs for the railcars in the portfolio that are under full-service lease contracts.

The offered notes in this transaction consist of two senior note classes, the Class A-1 and Class A-2 and a subordinate Class B-1 note. The Class A-1 Notes will amortize to zero over 7 years, until the anticipated repayment date (“ARD”), on the payment date in October 2026. The Class A-2 Notes will amortize straight-line to zero over 11 years following the ARD.

The transaction provides a number of structural protections for noteholders including credit enhancement comprised of overcollateralization, liquidity facility, and performance triggers.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

To access ratings, reports and disclosures, click here.

Related Publications: (available at www.kbra.com)

• NP SPE IX LP, Series 2019-1 Pre-Sale Report
• Global General Rating Methodology for Asset-Backed Securities
• Global Structured Finance Counterparty Methodology
• Railcar Industry in Review: Down But Not Out

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical Contacts:

John Lampasona, Director

(646) 731-2318

jlampasona@kbra.com

Zara Shirazi, Director

(646) 731-3326

zshirazi@kbra.com

Preston Boutwell, Senior Analyst

(646) 731-2367

pboutwell@kbra.com

Adam DeJong, Associate

(646) 731-2476

adejong@kbra.com