Barclays Bank Delaware upsized an offering of notes fom its Dryrock issuance trust by $150 million to $650 million, according to a deal term sheet.
The deal’s, triple-A rated, class A notes structured with a weighted average maturity of 2.95 years were priced today at 36 basis points over one-month Libor.
The bonds are backed by credit card receivables. There are 2,454,134 credit card accounts assigned to the vehicle, which was established in 2012.
The latest deal is the bank’s fourth in the U.S.
As of Dec. 31, 2013, the trust included approximately $5.57 billion in principal credit card receivables that were generated by 2.45 million designated accounts, according to a presale report published by Standard & Poor's. Of these accounts, about 93% were co-branded, with 21 different partners.
S&P noted in its presale report that the co-branded relationship Barclays has with US Airways Group may be impacted by airline's December 2013 merger with American Airlines. As of Jan. 31, 2014, the US Airways receivables represent 10.78% of Dryrocks' total receivables.
Barclays Bank Delwaware does not plan to originate new credit card accounts under the combined airlines. However, the banks will continue to maintain existing US Airways credit card accounts until their renewal.
S&P said that if the US Airways Group co-branded agreement is not renewed, the performance of Dryrocks' receivables could be affected. “It is possible that a significant percentage of the cardholders could discontinue using their cards if they no longer receive airline miles when using the card,” said S&P.