Barclays Bank upsized its latest credit card securitization deal Dryrock Issuance Trust (Series 2014-2) by $125 million to $625 million. The deal priced today a few basis points wider that Bank of America's May 8th securitization.
The notes, which were assigined a preliminary 'Aaa'/AAA’ rating by Moody's Investor Service and Standard & Poor's, priced at 34 basis points over one month Libor. The notes have a weighted average life of 2.96-years.
The notes benefit from credit support of 21% and $132.9 million of unrated class B notes. Barclays Capital is the underwriter.
By comparison, Bank of America priced its three-year 2014-2 notes at 27 basis points over one month Libor.
Drydock was established in 2012 and this is the fifth deal issued via the trust, though Barclays issues credit card deals more frequently in the U.K., according to the presale report. The previous deal, series 2014-1, also consisted of two-year notes; they yield one-month Libor plus 36 basis points, according to a regulatory filing.
The structure of the series 2014-2 transaction is the same as the previous transaction, according to S&P. Since the last transaction, collateral performance has remained steady, with monthly loss rates remaining in the 2.75%-3.25% range and payment rates remaining above 25%.
As of March 31, the trust included approximately $5.32 billion in principal credit card receivables that were generated by 2.45 million designated accounts. Of these accounts, about 93% were co-branded with 20 different partners.