California Republic Bank plans to tap the market with $350 million of bonds backed by a pool of new and used prime auto loans, according to a DBRS presale report.
CRART 2015-1 is structured with three tranches of DBRS-rated, AAA’ notes that total $267 million and $48 million of class A1, money market notes, rated R-1’. The class A1 notes mature March 2016, the class A2 notes mature December 2017, the class A-3 notes mature April 2019 and the class A4 notes mature October 2020.
Additionally the issuer plans to sell $21 million of A’-rated class B notes, due February 2021 and $10 million of BBB’-rated class C notes, due November 2021.
CRART 2015-1 is the issuer’s eighth securitization of auto loans. The deal resembles the December 2014 transaction, CRART 2014-4. The pool consists of loans with a weighted average FICO of 692.8. The loans are structured with a WA loan-to-value ratio of 112.7% and are seasoned one month. On average, the loans have another 5.6 years worth of payments left at a WA APR of 7.18%.
CRB, a California state chartered commercial bank, is wholly owned by California Republic Bancorp. The bank received approval from regulators to expand into automobile lending in 2011. Bancorp initially targeted prime and a small amount of near-prime obligors within the State of California but has expanded its auto platform into Arizona, Texas, Nevada, Kansas and Missouri.
This pool has obligors from nine states: the top three are California (with a receivable total of 51.83%), Texas (30.34%) and Arizona (9.59%), while Nevada, Missouri, Kansas, Oklahoma, Washington and Iowa account for a combined 8.24%.