Carvana Auto Receivables Trust 2023-P5 is planning to sell $218.4 million in asset-backed securities to investors, using the net proceeds to pay down existing debt and for general operating purposes.
Known as CRVNA 2023-5, the deal will issue eight tranches of notes, and close by December 29, 2023, according to the Asset Securitization Report's deal database.
Credit enhancement consists of overcollateralization, excess spread of about 6.09%, subordination (except for the class D and class N notes), and a reserve account funded at closing. The transaction includes a class N reserve account, which can be used to pay any class N interest shortfalls, according to ratings analysts from Kroll Bond Rating Agency and S&P Global Ratings.
Bridgecrest Credit will be the primary servicer of the securitization, and the backup servicer is Vervent, according to ratings analysts. The owner trustee and grantor trust trustee is BNY Mellon Trust of Delaware, with Wells Fargo Bank as the bank account provider, analysts said.
The transaction is collateralized by $212.97 million in automobile loans to mainly prime obligors as defined by the company. The average loan balance is $24,040, the weighted-average non-zero FICO is 704, and the weighted-average loan-to-value is 94.98%. The remaining loan term is 71 months out of an original term of 72 months, analysts said.
The CRVNA 2023-P5 collateral pool is geographically diversified with Texas (10.8%), California (7.7%), and Florida (6.4%) representing the highest state concentrations.
The pool mix for CRVNA 2023-P5 is similar to CRVNA 2023-P4, although initial hard credit enhancement levels are higher for all classes of notes except for the class C, class D, and class N notes, according to KBRA.
KBRA has assigned a K1+ rating to the class A1 notes, AAA to classes A2 through A4, AA+ to class B, A+ to class C, BBB+ to D, and BBB to class N.
S&P has assigned a preliminary rating of A-1+ to class A1, AAA to classes A2 through A4, AA to class B, A+ to class C, BBB+ to D, and BB+ to the N notes.
