Ally Bank upsized and priced an upiszed offering of dealer floorplan notes, according to a prospectus filed with the Securities and Exchange Commission.
The Ally Master Owner Trust 2014-4 issued $975 million of notes, a $225 million increase from the $750 million originally offered. The deal consists of two tranches, both with preliminary triple-A ratings from Standard & Poor’s and Fitch Ratings: $325 million Series 2014-4 Class A-1 notes priced at a spread of 40 basis points over one-month Libor and the $650 million Series 2014-4 Class B notes priced at 40 basis points over interpolated swaps.
The notes are backed by a revolving pool of loans and lines of credit under floorplan agreements between Ally Bank and retail automotive dealers—primarily dealers of Chrysler Group and General Motors vehicles—to finance their inventory. New and used autos and lights, as well as medium-duty trucks and vans are included in this inventory.
Credit enhancement consists of a reserve fund with an initial balance of $10 million and three classes of subordinated notes that will not be publicly offered: $55.3 million of class B notes, $40.2 million of class C notes, $30.2 million of class D notes and $130.8 million of class D notes.
The notes have a weighted average life of 2.91 years.
Deutsche Bank Securities, J.P. Morgan and RBC Capital Markets are the underwriters.
Ally was last in the market with an offering of dealer floorplan notes in March, when it sold $900 million.
Ally began in 1919 as a captive finance subsidiary and is now a prominent automotive financial services company powered by a top online banking franchise.