Capital One is securitizing $1.15 billion in consumer and small-business credit-card receivables, in its first asset-backed card series notes transaction since August.
The notes are being sold in three Class A series through the Capital One Multi-Asset Execution Trust (COMET), each with preliminary triple-A ratings Fitch Ratings and Standard & Poor’s.
The ntoes being issued are the $500 million 2017-1 series trance; the $250 million floating-rate 2017-2 tranche; and a $350 million 2017-3 tranche. The notes carry 21% credit enhancement, supported by a series of outstanding B, C and D notes, according to presale reports.
S&P says the note structure has not changed the previous Class A COMET issuances in 2016, including the types of eligible accounts and receivables, collections procedures and early redemption events.
About 89% of the pool of receivables is derived from payments from consumer accounts. None of the accounts included from either the consumer or the small-business receivables pool are younger than five years, with a weighted average mean account age of 152 months. More than 50% of the consumer accounts have prime scores over 720; for small business cardholders, over 56% have FICOs over 720.
The new notes will boost the number of outstanding Class A note tranches issued through COMET to 24, totaling $16.55 billion. The total volume of outstanding bonds is $21.1 billion including outstanding Class B and C notes.
The closing date is to be determined on the new notes issuance. Underwriters of this deal include Capital One, Credit Suisse, RBC Capital and Wells Fargo.