American Express plans to return to market this year with a second issue from its American Express Credit Account Master Trust.
The deal, Series 2013-2, will offer investors $555.55 million of asset-backed notes that are secured by receivables generated by its consumer and small business charge accounts, according to a Fitch Ratings presale report.
Fitch assigned preliminary rating of ‘AAA’ to the $500 million class A notes.
The structure will also offer $22.22 million of ‘A+’-rated class B notes and $33.33 million of ‘BBB’-rated class C notes.
The class A notes will be sold publicly and the class B and C notes may be purchases directly by an affiliate of the American Express.
The credit enhancement supporting the class A notes totals 10% and is derived from 4% subordination of the class B notes and 6% subordination of the class C notes, according to Fitch.
Bank of America Merrill Lynch, Credit Suisse and JP Morgan are lead underwriters on the deal.
Series 2013-2 is the second public transaction issued out of the trust. In July, American Express issued a $595.24 million deal.