CarMax Auto Superstores is again considering an upsizing of its current $1.15 billion used-vehicle loan securitization, in what will be its second deal of 2021 after closing.
CarMax Auto Owner Trust 2021-2 could potentially be upsized to $1.56 billion, according to presale reports from Fitch Ratings and S&P Global Ratings. CarMax upsized its first deal of the year
The transaction, being led by BofA Securities, includes four tranches of senior notes and three subordinate class note offerings. The Class A-2 notes totaling $379.12 million (or $513.06 million from the larger proposed pool) will be split between fixed-and-floating rate tranches; a Class A-3 tranche will have either $346.1 million or $468.1 million in notes; and the Class A-4 tranche is initially proposed at $93.5 million, but could be bumped up to $126.43 million.
Each carries preliminary AAA ratings from Fitch Ratings and S&P Global Ratings.
The money-market tranche, rated A-1+ (S&P) of F1+ (Fitch), will total either $254 million or $343 million.
The notes will be secured by loans with an average balance of $14,469, weighted average original terms of 66.3 months with 7.8 months of seasoning, with a WA APR of 7.8%.
The pool of loans includes called collateral from prior CarMax securitizations, making up 10.22% of the pool, more than double the total from CarMax's previous deal.
