UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM ABS-15G
ASSET-BACKED SECURITIZER
REPORT PURSUANT TO SECTION 15G OF
THE SECURITIES EXCHANGE ACT OF 1934
Check the appropriate box to indicate the filing obligation to which this form is intended to satisfy:
☐ | Rule 15Ga-1 under the Exchange Act (17 CFR 240.15Ga-1) for the reporting period _______________ to________________ |
Date of Report (Date of earliest event reported) __________________________
Commission File Number of securitizer: ________________________________
Central Index Key Number of securitizer: _______________________________
Name and telephone number, including area code, of the person to
contact in connection with this filing.
Indicate by check mark whether the securitizer has no activity to report for the initial period pursuant to Rule 15Ga-1(c)(1) ☐
Indicate by check mark whether the securitizer has no activity to report for the quarterly period pursuant to Rule 15Ga-1(c)(2)(i) ☐
Indicate by check mark whether the securitizer has no activity to report for the annual period pursuant to Rule 15Ga-1(c)(2)(ii) ☐
☒ | Rule 15Ga-2 under the Exchange Act (17 CFR 240.15Ga-2) |
Central Index Key Number of depositors: 0001891106
CP EF Asset Securitization I, LLC |
(Exact name of issuing entity as specified in its charter)
Central Index Key Number of issuing entity (if applicable): N/A
Central Index Key Number of underwriter (if applicable): N/A
Brandon Nelson (612) 430-1280
Name and telephone number, including area code, of the person to
contact in connection with this filing
INFORMATION TO BE INCLUDED IN THE REPORT
PART II – FINDINGS AND CONCLUSIONS OF THIRD-PARTY DUE DILIGENCE REPORTS
Item 2.01 Findings and Conclusions of a Third Party Due Diligence Report Obtained by the Issuer
The disclosures required by Rule 15Ga-2 (17 CFR 240.15Ga-2) are attached as an Exhibit to this Form ABS-15G. Please see the Exhibit Index for the related information.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the reporting entity has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: June 17, 2022
Channel Partners Capital, LLC (Securitizer) | ||
By: | /s/ Brandon Nelson | |
Name: | Brandon Nelson | |
Title: | Vice President/Finance |
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EXHIBIT INDEX
Exhibit Number | Description | |
Exhibit 99.1 | Consultant Report of RSM US LLP, dated June 15, 2022 |
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Exhibit 99.1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM ABS DUE DILIGENCE-15E
CERTIFICATION OF PROVIDER OF THIRD-PARTY DUE DILIGENCE SERVICES FOR ASSET- BACKED SECURITIES
Pursuant 17 CFR 240.17g-10, this Form must be used by a person providing third- party due diligence services in connection with an asset-backed security to comply with section 15E(s)(4)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 78o- 7(s)(4)(B)). Section 15E(s)(4)(B) of the Securities Exchange Act of 1934 requires a person providing the due diligence services to provide a written certification to any nationally recognized statistical rating organization that produces a credit rating to which such due diligence services relate. |
Item 1. Identity of the person providing third-party due diligence services
Legal Name: RSM US LLP
Business Name (if Different): Not Applicable
Principal Business Address: 5444 Wade Park Blvd, Suite 350, Raleigh, NC 27607
Item 2. Identity of the person who paid the person to provide third-party due diligence services
Legal Name: Channel Partners Capital, LLC
Business Name (if Different): Not Applicable
Principal Business Address: 11100 W Wayzata Blvd #305, Minnetonka, MN 55305
Item 3. Credit rating criteria
If the due diligence performed by the third party is intended to satisfy the criteria for due diligence published by a nationally recognized statistical rating organization, identify the nationally recognized statistical rating organization and the title and date of the published criteria (more than one nationally recognized statistical rating organization may be identified).
RSM US LLP was not engaged to perform procedures that were intended to satisfy any criteria for due diligence published by a nationally recognized statistical rating organization.
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Item 4. Description of the due diligence performed
Provide a description of the scope and manner of the due diligence services performed in connection with the review of assets that is sufficiently detailed to provide an understanding of the steps taken in performing the review. Include in the description: (1) the type of assets that were reviewed; (2) the sample size of the assets reviewed; (3) how the sample size was determined and, if applicable, computed; (4) whether the accuracy of information or data about the assets provided, directly or indirectly, by the securitizer or originator of the assets was reviewed and, if so, how the review was conducted; (5) whether the conformity of the origination of the assets to stated underwriting or credit extension guidelines, standards, criteria or other requirements was reviewed and, if so, how the review was conducted; (6) whether the value of collateral securing such assets was reviewed and, if so, how the review was conducted; (7) whether the compliance of the originator of the assets with federal, state, and local laws and regulations was reviewed and, if so, how the review was conducted; and (8) any other type of review that was part of the due diligence services conducted by the person executing this Form. This description should be attached to the Form and contain the heading “Item 4.” Provide this description regardless of whether the due diligence performed is intended to satisfy the criteria for due diligence published by a nationally recognized statistical rating organization.
(1) See attached Independent Accountant’s Report on Applying Agreed-Upon Procedures dated June 15, 2022 pertaining to CP EF Asset Securitization I, LLC.
(2) See attached Independent Accountant’s Report on Applying Agreed-Upon Procedures dated June 15, 2022 pertaining to CP EF Asset Securitization I, LLC.
(3) See attached Independent Accountant’s Report on Applying Agreed-Upon Procedures dated June 15, 2022 pertaining to CP EF Asset Securitization I, LLC.
(4) See attached Independent Accountant’s Report on Applying Agreed-Upon Procedures dated June 15, 2022 pertaining to CP EF Asset Securitization I, LLC
(5) Not applicable/addressed
(6) Not applicable/addressed
(7) Not applicable/addressed
(8) None
Item 5. Summary of findings and conclusions of review
Provide a summary of the findings and conclusions that resulted from the due diligence services that is sufficiently detailed to provide an understanding of the findings and conclusions that were conveyed to the person identified in Item 2. This summary should be attached to the Form and contain the heading “Item 5.”
The findings can be found in the attached Independent Accountant’s Report on Applying Agreed-Upon Procedures dated June 15, 2022 pertaining to CP EF Asset Securitization I, LLC. Consistent with attestation standards established by the American Institute of Certified Public Accountants, there were no conclusions that resulted from the due diligence services. We were not engaged to, and did not conduct, an examination to express an opinion or a review to express a conclusion on the accuracy or completeness of the documents or information of the equipment receivable portfolio in connection with the issuance of equipment receivable backed notes issued by CP EF Asset Securitization I, LLC.
CERTIFICATION
The undersigned has executed this Form ABS Due Diligence 15E on behalf of, and on the authority of, the person identified in Item 1 of the Form. The undersigned, on behalf of the person, represents that the person identified in Item 1 of the Form conducted a thorough review in performing the due diligence described in Item 4 attached to this Form and that the information and statements contained in this Form, including Items 4 and 5 attached to this Form, which are part of this Form, are accurate in all significant respects on and as of the date hereof.
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For purposes of this certification, consistent with attestation standards established by the American Institute of Certified Public Accountants, we were not engaged to, and did not, conduct an examination to express an opinion or a review to express a conclusion on the accuracy or completeness of the documents or information of the equipment receivable portfolio in connection with the issuance of equipment receivable backed notes issued by CP EF Asset Securitization I, LLC.
Name of Person Identified in Item 1: RSM US LLP
By: | RSM US LLP | ![]() |
(Print name of duly authorized person) | (Signature) |
Date: June 15, 2022
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Independent Accountant’s Report on Applying Agreed-Upon Procedures
Board of Directors and Management
Channel Partners Capital, LLC and Subsidiaries (the Company) Minnetonka, Minnesota
And
Truist Securities, Inc. New York, New York
We have performed the procedures enumerated below on certain records and transactions of the Company for the purpose of assisting the Company and Truist Securities, Inc. (collectively, the Specified Parties) in comparing specified attributes to source documents as listed in Exhibit A in connection with the issuance of equipment receivable-backed notes issued by CP EF Asset Securitization I, LLC in accordance with the confidential Preliminary Offering Circular dated on or around June 17, 2022 (the Offering Circular). The Company is responsible for certain records and transactions of the Company for the purpose of assisting the Specified Parties in comparing specified attributes to source documents as listed in Exhibit A in connection with the issuance of equipment receivable-backed notes issued by CP EF Asset Securitization I, LLC in accordance with the Offering Circular. The sufficiency of these procedures is solely the responsibility of the Specified Parties identified in this report.
The Company has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of assisting the Specified Parties in comparing specified attributes to source documents as listed in Exhibit A in connection with the issuance of equipment receivable-backed notes issued by CP EF Asset Securitization I, LLC in accordance with the Offering Circular. Additionally, Truist Securities, Inc. has agreed to and acknowledged that the procedures performed are appropriate to meet their purposes. This report may not be suitable for any other purpose. The procedures performed may not address all of the items of interest to a user of this report and may not meet the needs of all of the users of this report, and as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures performed and associated findings are as follows:
Agreed-Upon Procedures and Findings
For the purposes of this report:
(i) | The computer-generated Loan Data Files provided in a standard Microsoft Excel format containing information related to the proposed transaction shall be herein referred to as the “Loan Data File.” |
(ii) | The fields in the Loan Data Files and signed Contract shall be herein referred to as “Specified Attributes.” |
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(iii) | The term “Contract” means the equipment receivable contract in the form of a Security Agreement, Lease Agreement, Amendment, or Secretary of State/Middesk report, in cases where the state of incorporation is not the billing state for the customer associated with the respective Security Agreement or Lease Agreement. |
(iv) | The term “Contract File” means any electronic documentation in the case of Contracts using electronic contracts. |
On May 4, 2022, the Specified Parties provided us with the Loan Data File with a cutoff date of April 30, 2022 (the “Loan Data File”) containing 2,857 individual customer accounts (herein referred to as “Underlying Assets”) that management represented was the entire population of the Underlying Assets in the proposed transaction. At the Specified Parties’ request, we selected a haphazard sample of 100 individual customer accounts from the Underlying Assets, and we were instructed by the Specified Parties to perform the agreed-upon procedures as outlined in the Arrangement Letter dated April 15, 2022, on the haphazard sample of 100 individual customer accounts. From May 4, 2022 to May 18, 2022, we were provided with the source documents referenced in Exhibit A related to the respective 100 individual customer accounts.
For the sample, we compared the Specified Attributes outlined in Exhibit A and as presented in the Loan Data File to the corresponding source documents outlined in Exhibit A.
In comparing the above Specified Attributes, we applied the following tolerances as instructed by the Specified Parties:
● | Original Amount Financed: +/- $1.00 |
● | Amount of the Monthly Payment: +/- $1.00 |
We found all Specified Attributes to be in agreement to source documents.
We did not perform any procedures with respect to the Specified Attributes relating to the Underlying Assets except for those set forth in Exhibit A.
We also inspected the presence of, compared or verified the following on the sample of 100 Underlying Assets:
● | Signed Contract or electronic documentation in the case of Contracts using electronic contracts. |
We identified no exceptions in our procedures outlined above.
We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or a review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on certain records and transactions of the Company for the purpose of assisting the Specified Parties in comparing specified attributes to source documents as listed in Exhibit A in connection with the issuance of equipment receivable-backed notes issued by CP EF Asset Securitization I, LLC in accordance with the Offering Circular. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.
Our agreed-upon procedures engagement was not conducted for the purpose of the following:
● | Addressing the completeness, accuracy, appropriateness, quality or integrity of any of the information provided to us for the purposes of performing the procedures agreed to by the Specified Parties. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. |
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● | Addressing the conformity of the origination of the assets to stated underwriting or credit extension guidelines, standards, criteria or other requirements. |
● | Addressing the value of collateral securing the assets being securitized. |
● | Addressing the physical existence or ownership of the assets being securitized. |
● | Addressing the compliance of the originator of the assets with federal, state, and local laws and regulations. |
● | Satisfying any criteria for due diligence published by a nationally recognized statistical rating organization. |
● | Addressing any other factor or characteristic of the assets that would be material to the likelihood that the issuer of the asset-backed security will pay interest and principal in accordance with applicable terms and conditions. |
● | Forming any conclusions. |
● | Addressing the fair value of the notes or any other disclosures relating to the notes being offered in the proposed transaction. |
● | Substantiating compliance with Rule 15Ga-2 of the Securities Exchange Act of 1934, including any legal interpretation as to the sufficiency of the procedures performed. |
● | Any other terms or requirements of the transaction that do not appear in the report. |
Accordingly, we do not provide any assurance on such information.
We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the Specified Parties, and is not intended to be, and should not be, used by anyone other than the Specified Parties, including investors and rating agencies, who are not identified as Specified Parties but who may have access to this report as required by law or regulation.
Raleigh, North Carolina
June 15, 2022
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Exhibit A
Specified Attributes and Source Documents
Number | Specified Attribute | Source Document(s) | ||
1 | Customer Name | Contract or Contract File | ||
2 | Equipment Product Type (Loan/Lease Type) | Contract or Contract File | ||
3 | Equipment Type (Asset Name) | Contract or Contract File | ||
4 | Original Term of Contract (Original Term) | Contract or Contract File | ||
5 | Original Amount Financed (Original Lease Receivable) | Contract or Contract File | ||
6 | Amount of the Monthly Payment (Current Payment) | Contract or Contract File | ||
7 | Customer State (Obligor State) | Contract or Contract File | ||
8 | Month of Origination (Funding Date) | Contract or Contract File |