The ABS market is seeing autos dominate the market again with two deals from GE and Hyundai Capital America (HCA).
Additionally, as earlier reported by ASR, there is also a motorcyle-backed transaction from Harley-Davidson Credit Corp. A student loan transaction called Scholar Funding Trust 2011-B is also circulating.
GE Dealer Floorplan Master Note Trust 2011-1 comprises four tranches from Class A to D. The $331.58 million deal has Bank of America Merrill Lynch and Barclays Capital as the lead underwriters.
For the prospectus supplement filing on the GE offering with the Securities and Exchange Commission, please click this link.
Moody's Investors Service has assigned preliminary ratings of 'Aaa(sf)' to the $300 million Class A; 'Aa2(sf) to the $6.3 million Class B; and 'A2(sf)' to the $9.47 million Class C. Moody's did not rate the $15.8 million Class D.
The dealer floorplan ABS is backed by floorplan, accounts and asset-based lending receivables originated by GE Commercial Distribution Finance Corp., Brunswick Acceptance Co., Polaris Acceptance, General Electric Capital Corp. and other originators from time to time, according to a presale report from Moody's.
Meanwhile, HCA is also in the market with a deal called Hyundai Auto Lease Securitization Trust 2011-A backed by auto lease receivables. HCA has issued 14 ABS backed by retail auto loans since 2001, Moody's reported.
According to a Moody's presale report, the 2011-A deal is a sequential pay structure in terms of of the Class A notes while the certificates representing the equity interest in the offering will be retained by the depositor then later transferred to HCA, which will also act as the servicer on the transaction.
Moody's assigned preliminary ratings of 'P-1 (sf)' to the A-1 Class and 'Aaa (sf)' to the A-2 to A-4 Classes. Standard & Poor's also rated the offering.
The over $600 million deal has Royal Bank of Scotland (RBS), BNP Paribas and Citigroup Global Markets as lead underwriters. HSBC, Societe Generale Corporate & Investment Banking, and Mizuho Securities are the co-managers on the auto lease ABS.
As earlier reported by ASR, Harley-Davidson is in the market with a $600 million motorcycle loan ABS called Harley-Davidson Motorcycle Trust (HDMT) 2011-1.
According to the rating agency, the firm has securitized around $19 billion of motorcylce contracts since 1994. The main difference between this deal and HDMT 2010-1 is that the 2011-1's weighted average FICO score is seven points more at 711.
Moody's has assigned provisional ratings of 'Prime-1 (sf)' to the Class A notes; 'Aaa (sf)' to the Class A-2 through A-4 notes; 'Aa2 (sf)' to the Class B notes; and 'A1 (sf)' to the Class C notes. The lead underwriters on the offering are Citi, JPMorgan Securities and RBS.
A student loan transaction called Scholar Funding Trust 2011-B is also in the market. The SLABS is backed by 98% rehabilitated FFELP collateral.
According to a Moody's presale report on the transaction, the agency expects that these loans are going to default at a much higher rate than non-rehabilitated collateral.
The deal's Class A notes, assigned provisional ratings of 'Aaa', are worth $399.5 million and the Class R notes, which are not rated by moody's, are worth $100 million. The deal's sponsor is JPMorgan Chase Bank, National Association.