Ally Financial priced a $500 million subprime auto loan securitization, according to a person familiar with the transaction.
Barclays, Deutsche Bank and JP Morgan were the lead underwriters.
The deal has a one-year revolving period during which additional receivables will be sold to the issuing entity, subject to certain eligibility criteria and concentration limits. It consists of four senior and three subordinate fixed-rate tranches. Moody’s Investors Service and Standard & Poor’s rated the deal.
The $107 million, AAA-rated tranche with a weighted average life of 1.24 years priced at 40 basis points over the Eurodollar synthetic forward curve (EDSF).
The $143 million AAA-rated tranche with a weighted average life of 1.8 years priced at 45 basis points over EDSF.
The $128 million, AAA-rated tranche with a weighted average life of 2.64 years priced at 55 basis points over interpolated swaps.
The $44 million, AAA-rated tranche with a weighted average life of 3.3 years priced at 65 basis points over interpolated swaps.
Credit enhancement was provided by reserve fund, overcollateralization and the subordinate notes.