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. 

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