Citigroup is planning two credit card receivables securitizations from its Citibank Credit Card Issuance Trust, according to Standard and Poor's presale reports.
One, Citiseries Class 2013-A3, is a $875 million fixed-rate deal. The other, Citiseries Class 2013-A4, is a $925 million floating-rate offering.
Along with Citigroup, JPMorgan Securities and RBC Capital Markets will underwrite the 2013-A3 notes. Bank of America Merrill Lynch, Credit Suisse Securities, and RBS Securities join on the 2013-A4 deal. Both are expected to close tomorrow.
Both transactions feature identical structures of a single tranche of notes with 18.5% credit support. They also share ratings: S&P assigned preliminary 'AAA' ratings to both.
The Citibank Credit Card Issuance Trust is backed by the undivided investor interest in the series 2000 certificates of a master trust called Citibank Credit Card Master Trust I. In turn, the master trust is collateralized by credit card receivables from VISA, MasterCard, and American Express revolving credit card accounts that are originated and serviced by Citibank.The aggregate amount of credit card receivables in the master trust was $35.8 billion as of June 30.
S&P notes that neither series' structure has changed from that of the previous class 2013-A2 notes issued out of this trust, including the issuing entity, eligible accounts and receivables, payment priority, collections and allocation mechanics, credit support and usage mechanics, early redemption events, and events of default.