Comenity Bank plans to issue $300 million of senior securities backed by credit card receivables from its World Financial Network Credit Card Master Note Trust.
The deal called, WFN Series 2015-A will issue $300 million of floating rate, triple-A, DBRS rated, 4-year notes. Comenity issued a total of three deals in 2014.
Also on offer are $26 million of AA’ rated class M notes, $26 million of A’ rated, class B notes, and $47 million of BBB’ rated class C notes. The pool is comprised of credit cards with an average balance of $1,299. The accounts' weighted average age was 75.72 months; most are older than 60 months.
According to DBRS, the trust's 32.5% utilization rate is one of the highest among its peers. “In our view, this is largely due to the pool's $1,299 average credit limit, which is among the lowest in the private-label credit card sector,” stated the presale report. “However, the pool's low credit lines are consistent with Comenity's niche among soft goods retailers, which tend to have lower credit limits than retailers offering bigger-ticketed items”.
BNP Paribas, Bank of America Merrill Lynch and Mitsubishi Securities are lead managers on the deal.
