A deal backed by toll receivables on an eight-mile stretch of highway in Illinois, called the Chicago Skyway Bridge, hit the U.S. ABS market last week. Though toll road-backed deals are somewhat rare in the U.S. market, the deal priced at aggressive levels resembling those of even shorter-dated home equity deals. Chicago-based Skyway Concession Co. issued the Rule 144A transaction, with Citigroup Global Markets and Goldman Sachs as joint leads.
The $1.4 billion two-tranche deal consists of 12-year and 17-year FSA-wrapped tranches priced to three-month Libor. The 12-year A tranche priced at 28 basis points over three-month Libor, while the 17-year tranche priced at 38 basis points over three-month Libor. By comparison, the average spread on a three-year home equity floater was 25 basis points over one-month Libor last week.