CarMax priced its latest prime auto loan ABS, CAOT 2014-4, that was upsized by $165 million to $1.2 billion.
The one-year, triple-A rated fixed rate notes priced at 30 basis points over the Eurodollar synthetic forward and the one-year, triple-A, floating rate notes priced at 27 basis over one-month Libor, a few basis points wide of where World Omni and Fifth Third sold similar tranches of their deals at the end of October.
CarMax sold the 2.5 year, triple-A rated, class A-3 notes at 30 basis points over interpolated swaps— seven basis points tighter than Fifth Third's transaction.
At the junior level, the 4 year double-A rated notes priced at 70 basis points over interpolated swaps; the 4 year, single-A rated notes sold at 95 basis points over interpolated swaps; and the triple-B rated, four year notes sold at 155 basis points over interpolated swaps. Fitch Ratings and Standard & Poor’s rated the deal.
CAOT 2014-4 has consistent, albeit slightly stronger, credit quality compared with CarMax pools securitized since 2011, with a weighted average Fair Isaac Corp. score of 704 and a diverse pool mix from make/model and geographic perspectives, according to Fitch.
Credit Suisse, Barclays and BofA Merrill Lynch managed the deal.