Ally Bank and USAA Bank priced a total of $1.8 billion in deals backed by auto loans and leases; both priced in line with initial guidance.

Ally upsized its auto lease deal to $1.26 billion from $1 billion. Credit Suisse, Deutsche Bank and RBC Capital Marketsare lead managers on the deal, which is backed by a pool of prime auto mobile leases on new GM and Chrysler vehicles.

The class A notes offered under AART 2014-SN1 are rated ‘AAA’/’AAA’ Fitch Ratings and Standard & Poor’s. It is Ally's third public auto lease transaction since 2011, according to the S&P presale report.

The class A-2 notes were issued as a combination of floating and fixed rate notes.  The floating-rate A2 notes with a 1.25-year weighted average maturity priced at 20 basis points over one-month Libor. The fixed rate portion, also with a 1.25-years weighted average maturity priced at 23 basis points over the eurodollar synthetic forward (EDSF) curve. The 2.11-year, class A3 notes class A3 notes priced at 27 basis points over EDSF. The 2.40-years, class A4 notes priced at 37 basis points over EDSF.

USAA Bank found similar appetite for its first retail auto loan transaction of the year, the $500 million Auto Owner Trust 2014-1. The notes offered under the capital structure also priced within guidance.

S&P and Moody’s Investors Service assigned preliminary ratings of ‘AAA’/‘Aaa’ to the class A-2, A-3 and A-4 notes.  The 1.06-year, class A-2 notes priced at 12 basis points over EDSF; the 1.97-years and class A-3 notes priced at 14 basis points over EDSF.

The class A4 notes, structured with a weighted average life of 2.86-years priced at 19 basis points over interpolated swaps curve.

Further down the curve, the 2.96-years, class B notes saw pricing tightened by 10 basis points from guidance to 55 basis points over interpolated swaps curve. JP Morgan is lead underwriter on the deal.

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