AmeriCredit priced its $1.1 billion securitization of subprime auto loans on Wednesday, according to pricing document.
Citigroup, Credit Suisse, JP Morgan, and Wells Fargo are the lead underwriters on the deal, AmeriCredit Automobile Receivables Trust (AMCAR) 2013-2.
The deal’s $214.7 million, triple-A, money market tranche priced at par for a yield 0.25%. The $382.8 million, .99-year, class A-2, triple-A’s priced at 20 basis points over the Eurodollar synthetic forward; the $183.8 million, 2.21-years, class A-3, triple-A’s priced at 24 basis points over interpolated swaps.
The capital structure sold its 2.93-years, $84.2 million, double-A notes at 70 basis point. The 3.52-years single-A’s were priced at 120 basis points. A $102.8 million, 3.98-years, triple-B tranche priced at 175 basis points and a $27.3 million, 3.99-years double-B tranche priced at 275 basis points.
By contrast the issuer priced a deal in January at tighter spreads across the capital structure. The 1-year triple-A’s on Americredit Automobile Receivables Trust 2013-1 priced at 18 basis points over the Eurodollar synthetic forward; the 2.16-years, triple-A’s priced at 22 basis points over interpolated swaps; the 2.98 years, double-A’s priced at 60 basis points; the 3.56-years, single-A notes priced at 100 basis points; the 4.02-years, triple-B notes priced at 145 basis points; and the 4.04-years, double-B notes priced at 200 basis points.
Fitch Ratings assigned preliminary rating to the deal earlier this week. The ratings agency said in the presale report that the pool of 2013-2 has a greater concentration of loans with longer terms, when compared to other transaction AmeriCredit brought to market earlier this year and last year. The weighted average original term is 71 months and loans with terms longer than 60 months comprise 89.93%, the highest Fitch has seen in a pool dating back to 2008.
“Longer term loans typically have higher loss severity, as loan amortization trails vehicle depreciation, exposing the transaction to higher loss severity if the obligor defaults,” the agency noted in the report.
