Bank of America is planning a $500 million credit-card asset-backed securitization, according to a preliminary prospectus filed Tuesday.
The BA Credit Card Trust 2016-1 issue will be feature a Class A tranche of BAseries notes, which BofA expects to have a triple-A structured finance rating from Moody’s Investors Service and Standard & Poor’s.
Bank of America Merrill Lynch is the underwriter.
Like the trust’s previous issues, the notes are secured by a series 2001-D collateral certificate representing an undivided interest in the revolving credit card receiveables of BofA.
The securitization is first through the BA Credit Card Trust since the $1.2 billion 2015-2 transaction from April 2015. That deal was also structured as a Class A/BAseries notes issuance, with a 1.35% interest rate and credit support of 31.75%, according to a Standard & Poor’s report last year.
The trust’s 2016-1 notes will carry the same CE backing from the same structure, although the level is to be determined from the final adjusted principal balance.
BofA is targeting a reserve account of 0.5%.