Last week CarMax began asserting itself as a soon-to-be independent, publicly traded company, demonstrating liquidity via a $200 million inventory-backed credit facility with car manufacturers DaimlerChrysler and Toyota Financial Services.

CarMax Chief Financial Officer Keith Browning stated that the company will use securitization as one of its primary funding sources. For the past few years, CarMax has been an off-and-on issuer, bringing two deals last year through Wachovia Securities' issuance vehicle Pooled Auto Securities Shelf (formerly a First Union structure).

Via PASS, CarMax last brought a deal in the $500 million range (November 2001). It is unclear whether the company will begin its own name-branded ABS program following the spin-off or continue with dealer vehicles. Sources at the company declined to comment on the future plans, citing a Securities & Exchange Commission mandated quiet period, pending the spin-off from Circuit City, which is roughly slated for late summer.

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