Comenity Bank, formerly World Financial Network Bank priced its triple-A notes from private label credit card ABS Series 2013-B on Tuesday.
The shorter dated note with an average life maturity of 2.99-years, priced at 40 basis points over interpolated swaps, according to a pricing term sheet. The tranche was also upsized to $500 million from $400 million.
Comenity was last in the market in February with five-year, triple-A notes that priced at 60 basis points.
RBC Capital Markets and JP Morgan are lead underwriters on the deal. The issuer will retain the double-A rated class M notes, the single-A plus class B notes and the triple-B rated class D notes.
The notes are backed by a pool of receivables arising under Comenity Bank, private-label, revolving credit card accounts generated through private-label programs of multiple retailers. Comenity Bank is a wholly owned subsidiary of Alliance Data Systems.
Comenity Bank’s credit card receivables on average show higher portfolio yield/payment rates, lower losses and higher delinquencies than our private-label composite index, according to a Standard & Poor’s report.
S&P said that the new deal brings year to date credit card issuance to $12 billion, below the pace the ratings agency anticipated for the market to meet its $40 billion forecast in 2013. Comenity Bank’s credit card receivables on average show higher portfolio yield/payment rates, lower losses and higher delinquencies than our private-label composite index, said S&P.