American Express plans to issue bonds backed by credit card receivables from its master trust, according to Fitch Ratings.

Citigroup, JP Morgan and Mitsubishi UFG Securities are listed as the underwriters on the deal.

The issuer will issue two series of bonds— series 2014-4 and series 2014-5 — that will offer class A notes rated ‘AAA’ and class B notes rated ‘A+’. However the size of the deals will be determined by investor interest.

The series 2014-4 three-year senior bonds are structured with slightly lower credit enhancement at 13.5% than the series 2014-5 three-year bonds, which have credit enhancement at 14.25%.  

Both deals are also structured with ‘BBB+’ rated class 1 notes and unrated class 2 notes that will not be offered publicly at issuance. The deals are structured with a revolving period that are scheduled to last up to one-year.

According to the Fitch presale with the latest transaction, 17 series of bonds will be outstanding in the master trust. As of Sept. 30, 2014, managed approximately $27.7 billion in loans. The active accounts designated for the trust portfolio had an average account balance of $3,529 and 99.21% of total receivables outstanding had seasoning of 60 months or greater. The trust is geographically diverse, with the top five states — California, New York, Florida, Texas and New Jersey—representing approximately 47.38% of the outstanding receivables pool.   

American Express was last in the market with its  American Express 2014-3 transaction in Septemeber. The deal consisted of $1.5 billion of senior bonds.  

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