Citibank plans to follow up on its January credit card securitization with a second deal issued from its Citiseries.
The size of the series 2014-A2 notes is yet to be determined, according to a deal prospectus filed with the Securities and Exchange Commission. However, Interactive Data is reporting that pricing guidance on the A2 notes, which have an expected maturity of Feb. 22, 2017, is at swaps plus 25 basis points area.
By comparison, the bank priced its seven-year, A1 notes on Jan. 22 at swaps plus 52 basis points.
Citigroup, Bank of America Merrill Lynch, JP Morgan and RBS Securities are the lead managers on the series 2014-A2 notes.
As of February 26, 2014, there were 48 subclasses of notes of the Citiseries outstanding, with an aggregate principal amount of $33 billion. Approximately 23.94% of the credit card receivables in the master trust are co-branded and issued under the Citibank/American Airlines AAdvantage program, according to the deal prospectus.
American Airlines completed a merger with US Airways Group last December. Any future termination of the AAdvantage program could negatively impact the payment rates and excess spread reported by the master trust.
Credits card securitizations are off to a strong start in 2014. So far, $7.2 billion of notes have been issued, a 16% increase year over year, according to a Deutsche Bank securitization reports.