CarMax is readying its fourth auto loan securitization of the year, according to rating agency reports.
The deal, called CARMAX 2015-4, will offer $900 million of securities backed by prime auto loans, bringing the issuer’s total issuance for 2015 to $4.1 billion.
The collateral is similar to that of CarMax’s previous transactions, with weighted average FICO score of 702 – on the high end of the 698 to 702 weighted average FICO range for the 2013-4 to 2015-3 CarMax transactions.
Loans in the pool have 4.6 months of seasoning, compared to 2.3 to 4.5 months of average seasoning for other recent CarMax transactions.
The receivables have a weighted average APR of 7.23%. This is higher than the weighted average APR range of 7.03% to 7.20% for the 2013-4 to 2015-3 CarMax transactions.
Like other recent CarMax transactions, 2015-4 has a high level of geographic diversity.
The trust will issue $154 million of money market notes and three tranches of senior securities with preliminary triple-A ratings from Moody’s Investors Service and Standard & Poor's. All four tranches benefit from subordination of 6.45% and an 0.25% reserve fund.
Credit Suisse, Barclays, and Wells Fargo Securities are the lead underwriters.
Editor's note: An earlier version of this stories misidentified the rating agencies rating the deal.