In a sign that demand for auto-related securitizations remains strong, Ally doubled the size of its most recent securitization of floorplan receivables to $1 billion, according to a filing with the SEC.
Ally Master Owner Trust 2015-5 is split into two tranches, both rated triple-A by Fitch Ratings and Standard & Poor’s.
Floating-rate, A-1 notes for a total $225 million priced at 49 basis points over one-month Libor. Fixed-rate, A-2 notes for $775 million priced to yield 1.606%.
Both tranches had a weighted average life of 2.93 years.
The A-1 notes priced wide of the 40 basis-point spread garnered by a comparable $325-million tranche in Ally’s last floorplan deal, 2014-4.
The yield on the A-2 notes also edged higher from the 2014-4 fixed rate tranche, which priced at 1.44%. Although those notes added up to a smaller $650 million.
Barclays, Credit Suisse and RBC were the joint bookrunners on the deal. BMO, BNS, CIBC, Lloyds and Natixis were co-managers.
The notes are backed by a revolving pool of receivables arising from floorplan financing agreements between Ally Bank and retail car dealers, primarily those selling General Motors and Chrysler vehicles.
Fitch said in its presale report that the trust receivables backing 2014-5 have a high percentage of floorplan loans backing new vehicles (89.2%) and only 6.5% of inventory aged past 270 days. Initial credit enhancement for the class A notes is 26.5%, identical to prior 2014 series issued.