CarMax priced an upsized, $1 billion of notes backed by prime auto loans.
The deal, CarMax Auto Owner Trust 2013-2, was originally sized at $800 million. It is rated by Standard & Poor’s.
The $178 million money market class priced at par to yield 0.23%, according to a regulatory filing. It has a weighted average life of 0.3 years.
The $312 million, 1.1-year, AAA-rated tranche priced at 25 basis points over the eurodollar synthetic forward curve.
The $308 million, 2.45-year, AAA-rated tranche priced at 35 basis points over interpolated swaps.
The $128.5 million, 3.72-year, AAA-rated tranche priced at 40 basis points over interpolated swaps.
There are also three classes of notes with a weighted average life of 4.02 years. The $24.5 million AA rated tranche was priced at 70 basis points over swaps; the $22 million A-rated tranche priced at 95 basis points over swaps and the $18 million, BBB tranche priced at 165 basis points over swaps.
J.P Morgan, Bank of America Merrill Lynch and Wells Fargo Securities are acting as joint bookrunners of the A, B, C and D classes; Barclays, RBC Capital Markets and RBS join as co-managers of the class A notes.
