Bank of America is preparing to issue the year's first securitization of credit card receivables via its BA Credit Card Trust.
Fitch Ratings assigned preliminary AAA’ ratings to the as-yet unsized offering of three-year notes, which benefit from credit enhancement of 31.75%. The transaction is expected to close by the end of this week.
Upon issuance of this deal, 12 tranches of class A notes will be outstanding under BACCT. The total invested amount of notes outstanding so far is approximately $17.034 billion, consisting of $8.250 billion of class A notes, including the Emerald Notes Program, which is currently unfunded, $3.501 billion of class B notes, $1.975 billion of class C notes and $2.208 billion of class D notes.
Bank of America was last in the market with a credit card deal in September when it sold $1.1 million of three-year bonds at a spread of 29 basis points over one-month Libor.