Securitization professionals spent most of last week networking at Information Management Network's ABS East conference, virtually silencing their trading floors at home offices. Out of an expected $14 billion in issuance, less than $300 million in deals priced by press time.
Banc of America Securities brought its credit card deal - and the only transaction for the day - to market on Tuesday. BACCT, 2006-A13, a private placement transaction with a seven-year weighted average life and rated triple-A, priced at two basis points over Libor.
Although action on the primary issuance side was slow, there was plenty of movement among anticipated deals. Ford Floorplan Securitization Trust, Ford Canada's first securitization trust, said it would delay the closing date its planned C$1.5 billion ($1.3 billion) dealer floorplan securitization by one week. BMO Nesbitt Burns, Royal Bank of Canada and Scotia Capital acting as lead managers on the transaction. Also, Crown Castle International plans to come to market with a $1.5 billion deal secured by revenue from cellular phone tower leases. The company plans to use the funds to pay an outstanding term loan under a credit facility, and to help finance its purchase of Global Signal Inc.
Still, the IMN conference offered up previews of business in the pipeline. HSBC Bank is planning to launch a new structured investment vehicle (SIV) in the first quarter of 2007. Called Asscher Finance Ltd., the SIV will feature a three-tier capital structure that will invest in top-rated commercial paper and medium-term notes, A/A' rated mezzanine notes and leveraged income notes. By launching Asscher, HSBC hopes to develop more single-A asset securitization investors into buyers of SIV programs, said someone familiar with the situation.
Word has it that Mizuho Financial Group, the parent of Mizuho Bank, is close to securing a license that will allow it to land investment banking underwriting mandates in the US. The bank hopes to have that license by next year, potentially giving the securitization business a new name on the league tables.
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