A pool of subprime installment sales contracts on retail motor vehicles will secure $467.5 million in securitization bonds to be issued from the Bridgecrest Lending Auto Securitization Trust 2024-2 (BLAST 2024-2), with slightly lower levels of enhancement.
DriveTime Car Sales originated the loans through its network of dealers, and the transaction, sponsored by Bridgecrest Acceptance, is expected to close within a week, according to ratings analysts at DBRS Morningstar. The transaction is expected to close on April 24, offering class A, B, C, D and E notes to investors through seven tranches, according to analysts.
Citigroup Global Markets, Deutsche Bank Securities and Wells Fargo Securities are managers on the deal, according to the Asset Securitization Report's deal database.
Bridgecrest Lending Auto's notes benefit from total initial credit support levels of 55.8% on the three class A notes, in total hard credit enhancement. Classes B, C, D and E benefit from enhancement levels of 47.9%, 35%, 22.1% and 16.5%, respectively, DBRS analysts said.
Indeed, the current levels of credit enhancement are a reduction from levels of 58.0%, 48.7%, 35.9%, 22.5% and 17% on the classes A, B, C, D and E on the BLAST 2024-1 deal, according to analysts from S&P Global Ratings.
Also, initial overcollateralization was at 13.73%, a decrease from the BLAST 2024-2 transaction, S&P said. The capital structure suggests the notes will also benefit from subordination.
Notes will begin to repay investors on May 15, 2024, and make monthly payments on the 15th until their final scheduled payment dates. For the classes A1, A2 and A3 notes, those maturity dates are May 15, 2025, Feb. 16, 2027, and June 15, 2028. Classes B, C and D will mature on Feb. 15, 2030, and the class E notes will mature on Jan. 15, 2031, according to DBRs.
DBRS will assign R1 ratings to A1; AAA to the A2 and A3 notes; AA to the class B notes; A to the class C notes; BBB to the class D notes and BB to the class E notes.
S&P intends to assign ratings of A1+ to the A1 notes; AAA to the A2 and A3 notes; AA to the class B notes; A to the C tranche; BBB to the class D notes and BB to the class E notes.
