Carvana's latest securitization will issue about $1.1 billion, and if it gets upsized to $1.5 billion it will be the platform's largest in about a year.
The deal will sell notes through seven class A, B, C and D tranches. They have maturity dates ranging from Sept. 10, 2027 on the A-1+ rated, A1 notes to Aug. 10, 2034 on the BBB-rated class D notes, according to S&P Global Ratings.
Analysts at Fitch Ratings find that the class A notes benefit from credit enhancement levels that represent 11.20% of the outstanding notes. Classes B,C and D, meanwhile benefit from credit enhancement levels of 7.30%, 2.65% and 0.50%, respectively.
The notes are collateralized by a mixture of new and used of car loans extended to prime borrowers. Fitch notes that the CRVNA 2026-P3 pool has a weighted average (WA) FICO score of 702, which puts it lower than both the 708 seen on the CRVNA 2026-P2 series. It is also on the lower end of the peer prime issuer range.
The collateral quality is still generally in line with previous Carvana prime securitizations, however, and very recent Carvana securitizations have shown improvement in net credit losses from previous downturns in performance, Fitch said.
On a monthly basis the notes will repay interest to the class A notes on a pro rata basis, then pay interest to the subordinate notes sequentially, Fitch said. '
S&P says the transaction will issue fixed-rate notes.
Bridgecrest Credit is on the deal as servicer, while Vervent is the backup servicer, according to S&P.
There were several structural changes from CRVNA 2026-P2, S&P said. Subordination on the class B notes, for instance, is 6.80%, an increase from 6.60%. Subordination on class A and C notes, for instance, were unchanged at 10.70% and 2.15%, respectively.
