Syndicate Financed Service Assets in Investor Agreements for Fixed Pools

Lessors book contracts to finance equipment and services and subsequently sell those contracts to investors through syndication and securitization agreements when they require funding to finance continued growth.

You can now create a pool of future receivables for financed service assets and link it to an investor agreement. Once the investor agreement is created, Oracle Lease and Finance Management manages disbursements to the investors and uses the investor agreement terms and conditions to manage the lease or loan contract.

With this new feature, you can raise additional funding and reduce risk in financing deals by syndicating future cash flows for equipment, financed service assets and financed fees through investor agreements.

Prior to Release 12.2.15, you were able to add future receivables for equipment and financed fees, but not financed service assets in investment agreements for Fixed Pools.

To syndicate financed service asset cash flows through investor agreements:

  1. Create a contract and add equipment and financed service assets.
  2. Set the Investor Assignable flag to Yes for the contract.
  3. Enter payments for all the assets.
  4. Activate the contract.
  5. Create a Pool and select the Fixed Amount flag.
  6. Navigate to Add Pool Contents, select the above contract and click Submit.
  7. The Add Pool Contents program.adds the below streams to the pool:
    • Equipment assets - Rent and Residual streams
    • Financed service assets - Loan Payment stream
  8. Create an investor agreement for the above Pool Number and activate the agreement.
  9. Disbursement elements are created on the investor agreement for the equipment and financed service asset streams.
  10. On activation of the investor agreement, investor accrual streams are created on the contract.
  11. Investor transactions such as disbursement, terminations and buybacks are supported for the syndicated equipment and financed service assets.

The following screenshots describe syndicating financed service assets:

Create Contract with Financed Service Asset

Create Contract with Financed Service Asset

Create Fixed Pool

Create Fixed Pool

Create and Activate Investor Agreement

Create and Activate Investor Agreement

View Contract Streams

View Contract Streams

Steps to Enable

You don't need to do anything to enable this feature.

Key Resources

For more information, refer to: Ability of Fixed Pool Syndication for Finance Service Asset Contracts (Doc ID 3047161.1)