PHH Corp. Announces $300M Increase in Committed Financing for its Fleet Management Business
MT. LAUREL, NJ - PHH Corporation announced it has closed, by its indirect wholly-owned subsidiary, Chesapeake Funding LLC, a $300 million aggregate upsizing in the committed funding capacity available under its Chesapeake Variable Funding Notes facilities (the "conduit facilities").
According to PHH, this upsizing increases the total committed capacity under the conduit facilities to $1.5 billion and increases the total committed financing arrangements in the company's fleet management segment to $3.6 billion.
PHH stated the upsized conduit facilities provide committed funding capacity to acquire vehicles intended for lease to customers of PHH Arval (PHH Vehicle Management Services, LLC).
As of December 29, 2011, there was $409 million of aggregate available capacity under the conduit facilities to provide funding for its domestic vehicle financing needs, according to the company.
The variable funding notes issued under the conduit facilities are rated Aa1 by Moody’s.
"PHH Arval continues to solidify its position as a leading provider of financing solutions for the commercial fleet industry,” said George Kilroy, PHH Arval Chief Executive Officer. “We are committed to providing a lease product to our fleet management clients that is consistent with our outstanding client service and award winning technology and innovation."