Ally Financial plans to be the second subprime auto lender to tap the market following a government probe into subprime auto lending and securitization practices.  

Ally will issue $750 million of securities backed by retail auto loans, according to a deal document. Citigroup, Credit Agricole and JP Morgan are the lead underwriters on the deal, Capital Auto Receivables Asset Trust 2014-3.

The capital structure will offer $643.4 million of senior, class A notes. The combination of fixed and floating rate notes will be offered over four tranches.  The $255 million of class A-1 notes are due Feb. 21, 2017; the $166 million of class A2 notes are due Dec. 20, 2017; the $166 million of class A-3 notes are due Nov. 20, 2018 and the $56.4 million of class A4 notes are due April 22, 2019.

Also on offer are $38.2 million of class B notes, due July 22, 2019; $36.19 million of class C notes, due Nov. 20, 2019 and $32.17 million of class D notes, due Feb. 20, 2020.

The pool is comprised of 45,194 auto loans that have a weighted average original term of 67.13 months and a remaining term of 54.11 months. Approximately 62% of the loans are for new vehicles. The weighted average FICO score of borrowers in the pool is 631.

Ally was last in the market in April, with CARAT 2014-2. The issuer paid a spread of 49 basis points over interpolated swaps for the class A3 notes, with a weighted average life 2.58-years.

CARAT 2014-3 follows AmeriCredit’s AMCAR 2014-3, which priced on Thursday to mixed results. The deal paid wider spreads when compared to the issuer’s previous deal, AMCAR 2014-2 but managed to rein in pricing within initial guidance talk despite the negative headlines regarding the Department of Justice investigation.

AMCAR 2014-3 priced its 2.3-year tranche, which carried a triple-A ratings, ended up pricing five basis points inside initial guidance, which called for a range of 35 to 39 basis points. Instead, it priced at 32 basis points.

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