The Canadian term market has been busy with two deals expected to close this week.
After completing a public offering in January, Genesis Trust priced a C$820 million last Wednesday.
"Genesis Trust had come to market fairly recently in January and taken out C$1 billion, and Hollis Trust had funded another $1.3 billion of similar assets in February, so for Genesis to come and take out another C$820 million dollars in the midst of a very active corporate calendar was tremendous," said William Furlong, managing director of the asset securitization group at TD Securities. "The issuer is quite pleased," he added. TD Securities was the lead underwriter in the deal.
The transaction, which was rated by both Dominion Bond Rating Service (DBRS) and Moody's Investors Service, was divided into three triple-A parts.
It consisted of a one-year tranche worth C$150 million aggregate principal amount of 0.120% PowerLine Line of Credit Receivables-Backed Notes, Series 2000-5 and a 3.5 year tranche of C$370 million aggregate principal amount of 0.380% of PowerLine Line of Credit Receivables, Series 2000-3. The third part is a C$300 million aggregate principal amount of 0.440% of PowerLine Line of Credit Receivables, Series 2000-4.
Honda Auto Receivables Trust
Honda Auto Receivables Term Trust (HART), a special purpose vehicle that was designed to purchase assets from Honda Canada Finance Inc., is set to close an auto loan-backed deal sometime this week.
The two-part deal, which hadn't priced as of press time, was rated triple-A by Moody's and DBRS. The portfolio includes motorcycle loans, comprising 6.2 % of the pool. Sources from the company have said that they are looking at roughly C$100 million per tranche.
Canada Imperial Bank of Commerce (CIBC) is acting as the sub-administrative agent for the deal.