BMW is preparing a $1.0 billion securitization of auto leases, according to a presale report published today by Fitch Ratings.
Barclays Capital is the lead underwriter.
BMW Vehicle Lease Trust (BMWLT) 2014-1 will issue a $201 million money market class of notes and three classes of notes with preliminary AAA’ ratings from Fitch: $320 million maturing in March 2016, $380 million maturing in February 2017 and $99 million maturing in August 2017.
The notes will be backed by a pool of closed-end vehicle leases, all of which are secured by new vehicles manufactured by BMW. According to the presale report, the pool is consistent with that of BMW’s previous lease securitization in 2013, with a “strong” weighted average FICO score of 765 and seasoning of 10 months. While the securitized residual has increased to 71.26%, model concentrations have decreased, with the top model making up 28.3% of the pool.
Initial credit enhancement has decreased by 0.50% from the 2013 deal, to 16.75% initially, but that will increase to 19.00% of the initial securitization value. Initial excess spread is expected to be 4.79%, in line with the 2013 deal.