Ally Bank is in the market with Ally Master Owner Trust Series 2011-3 (AMOT 2011-3), which is backed by receivables originated in connection with the purchase and financing by motor vehicle dealers of their new and used car and truck inventory, according to a DBRS presale report.
Meanwhile, Barclays Capital and Goldman Sachs just announced a 144A ABS for drive-in restaurant chain Sonic Corp. called SONIC Capital Series 2011-1.
The deal's, which is rated 'BBB'/'Baa2' by Standard & Poor's and Moody's Investors Service, $500 million A-2 class has a weighted average life of 6.27-years.
Pricing is expected at the end of the week while the transaction's settlement date is on May 20.
In late April, and as reported by StructuredFinanceNews.com, Sonic announced that certain of its subsidiaries are going to refinance their outstanding securitization debt with a new securitization debt facility.
Meanwhile, Ally's offering is the third securitization collateralized by Ally Bank’s wholesale receivables this year. Its the firm's ninth overall. According to DBRS, each of the eight
outstanding series are still outstanding. The early amortization events for each series are mostly the same.
Since 2007, Ally Bank has funded non-General Motors Co. (GM)-franchised dealers. In April 2009, GMAC was the preferred provider of financing for Chrysler Group dealers. In May 2009, Ally Bank received an expanded exemption from Section 23 A from the Federal Reserve Board that allowed the bank to considerably increase its financing of GM dealers. Most of the dealers in Ally Bank’s managed portfolio and the master trust own GM or Chrysler franchised dealerships. The wholesale servicing is performed by Ally Financial, DBRS reported in the presale.
Ally Financial, previously GMAC, is the servicer of the receivables. Wells Fargo Bank is trust's back-up servicer.
DBRS said that the credit enhancement for the deal's class A notes is 33.0%. This amount is derived from 32.0% subordination of notes and 1.0% reserve account. Class B, Class C and Class D notes are supported by 26.75%, 22.0% and 17.0% enhancement, respectively.
As of April 19, the aggregate principal balance of the eligible receivables outstanding in the master trust from 3,427 dealer accounts reached $11.1 billion. The receivables from GM dealers comprised 71%, 21.26% from Chrysler dealers and the rest of the receivables were from an assortment of franchised dealers from various manufacturers.
Ally Bank's managed portfolio comprised $17.2 billion in receivables as of March 31 from 6,289 dealer accounts. At this time, the split of receivables from GM, Chrysler and other was 58.08%, 34.21% and 7.71% respectively, DBRS stated.