January 29, 2010 (FinancialWire) — PHH Corp. (NYSE: PHH) said it has closed a series of transactions resulting in the sale of certain fleet lease assets originated and serviced by PHH Vehicle Management Services Inc., the company’s indirect wholly-owned Canadian fleet management business, to Fleet Leasing Receivables Trust, which, in turn, issued and sold around CDN$363 million of senior Series 2010-1 Asset-Backed notes backed by the PHH VMS fleet lease assets.

FLRT is a Canadian special purpose trust established and administered by PHH VMS for the purpose of acquiring, disposing of and administering fleet leases and borrowing funds or issuing securities to finance the acquisition of such assets.

FLRT issued two tranches of class A-1 notes for aggregate proceeds of around CDN$126 million, both tranches being rated R-1 and P-1 by DBRS and Moody’s Investors Service, respectively.

In addition, FLRT issued two tranches of class A-2 notes for aggregate proceeds of around CDN$237 million, both tranches being rated AAA and Aaa by DBRS and Moody’s, respectively.

In connection with its responsibility for managing the Canadian Secured Credit Facility that has been jointly established by Canada’s Departments of Finance and Industry, the Business Development Bank of Canada purchased all of the approximately CDN$91 million of notes issued in one of the class A-2 Note tranches.

PHH plans to use most of the net proceeds from the issuance and related transactions to reduce outstandings under the company’s credit revolver.

Mount Laurel, New Jersey-based PHH is an outsource provider of mortgage and vehicle fleet management services. Its subsidiary, PHH Mortgage, is a retail originator of residential mortgages in the United States1, and its subsidiary, PHH Arval, is a fleet management services provider in the United States and Canada.

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