CarMax is readying its third prime auto loan securitization of the year, according to a regulatory filing.
The pool of receivables will consist of motor vehicle retail installment sale contracts.
CarMax Auto Owner Trust 2014-3 will issue $1.0 billion of notes, including four tranches of senior, class A notes: $172 million class A-1, $330 million class A-2, $330 million class A-3, and $111.5 million class A-4 notes. There will also be class B, C, and D subordinated notes offered.
The joint bookrunners for the deal are RBC Capital Markets, Wells Fargo Securities, and Barclays.
CarMax’s last issuance was in May with $987 million CarMax Auto Owner Trust 2014-2—upsized from the $800 million of notes originally being offered. The deal is backed by prime auto loans. The $167 million class A money market tranche has a coupon of 0.19% and priced at par and the $310 million class A-2 notes, with a weighted average life of 1.07 years, priced to yield 20 basis points over the eurodollar synthetic forward curve. Standard & Poor’s rated the class A-1 notes A-1+’ and the class A-2 notes AAA.’
CarMax is the largest retailer of used motor vehicles in the United States. As of June 30, 2014, CarMax operated 137 used car superstores in 68 markets.
