Demand seems to be strong right now for dealer floorplan transactions.
Investors bought an extra $400 million of Nissan Motor Acceptance Corp’s dealer floorplan securitization and will get a chance to bid on a couple of new floorplan deals that Ford began marketing today.
Ford Motor Credit Co. hasn’t yet sized the two transaction it will issue concurrently from its Floorplan Master Owner trust. Both the 2015-1 and 2015-2 will offer fixed- and floating-rate AAA’-rated transactions as well as AA’-rated B notes. The 2015-1 notes are structured with a three-year term and the 2015-2 with a five-year term.
The A notes and B notes from both series are structured with credit enhancement at 24.38% and 20.88% respectively. Both transactions will also offer unrated class C and D notes.
The notes are backed by a revolving pool of dealer floorplan receivables originated from credit lines the issuer makes to retail automotive dealers franchised mainly by Ford Motor Co. (Ford), selling Ford and Lincoln brand vehicles.
Most of the trust receivables in the transactions are from loans backing new vehicles
Nissan Motor Acceptance Corp increased its floorplan securitization, NMOTR 2015-A, by $400 million to $900 million. The issuer sold the three-year fixed-rate class A-1 notes at 40 basis points over one month Libor and the floating-rate class A-2 piece at swaps plus 40 basis points, according to a pricing document. Fitch rated the deal AAA’.
The notes are backed by a revolving pool of dealer floorplan receivables originated from credit lines made by Nissan to retail automotive dealers selling Nissan and Infiniti brand vehicles. The notes are secured by passenger and utility vehicles and light-duty trucks that are mostly new vehicles.
A pick up in new car sales has been a boon to Nissan dealers and most are currently profitable, according to the presale report. Nissan groups its dealers into four categories based on credit ratings: A, B, C, and D. The principal balance of group A dealer ratings totaled 65.3% at Dec. 31, 2014 and group B dealers totaled 16.0% for the trust series, according to the Fitch presale.
Barclays is the lead underwriter on all three deals.