American Express will issue $720 million of securities backed by a pool of credit card receivables originated at least four years ago, according to a Moody’s Investor Service presale report.
Barclays, Deutsche Bank and Wells Fargo are the lead managers on the deal, American Express 2014-3.
The pool is comprised of American Express credit cards, including Optima, Blue, co-branded credit cards with Delta Airlines, Costco, Hilton and Starwood Hotels, and others; and credit lines extended to charge card members for travel-related expenditures originated by Centurion and FSB.
Standard & Poor’s has also assigned preliminary ratings to the deal. The capital structure will offer $650 million, class A notes rated Aaa’/ AAA’ and $28.2 million of class B notes rated A2’/ AA+’ . All of the notes mature in September 2017.
As of 30 June 2014, American Express managed approximately $66.3 billion in worldwide cardmember loans, of which it has sold approximately $28.3 billion to the American Express Credit Account Master Trust.
