Comenity Bank priced its second credit card securitization of the year under World Financial Network Credit Card Master Note Trust, according to a regulatory filing.

The Series 2014-B notes, totaling $394.74 million, are backed by a pool of receivables arising under Comenity’s private-label, revolving credit card accounts generated through private-label programs with multiple retailers. 

Of the six tranches to be issued, only the $300 million class A notes with preliminary ‘AAA’ ratings from Fitch Ratings were publicly offered.  The notes, which benefit from credit enhancement of 24% and have a weighted average life of 1.16 years, yield 28 basis points over the eurodollar synthetic forward curve. 

The lead underwriters are JP Morgan Securities and RBC Capital Markets.

The previous series, issued by the trust in February, consisted of $625 million of notes.  The $450 million class A notes for the deal, World Financial Network Credit Card Master Note Trust 2014-A, received ‘AAA’ ratings from Fitch, and benefit from a credit enhancement of 28%.  Of the last seven transactions, including 2014-B, the Series 2014-A notes are the only floating-rate notes.

With the issuance of the series 2014-B, there will be 11 term series outstanding in the master note trust, with principal amounts totaling approximately $5.05 billion as of March 31.   The master note trust also has a total of approximately 189.1 million of finance charge receivables generated from about 41 vendor programs.

Comenity Bank, formerly known as World Financial Network Bank, is a national banking association and limited-purpose credit card bank established under the Competitive Equality Banking Act of 1987.  The bank’s primary role is to acquire and fund private-label credit card receivables while mitigating balance sheet risks.  Comenity was formed in 1989 to provide services to retail establishments owned by The Limited Brand.  Comenity was sold in 2003 and is now a wholly owned subsidiary of Alliance Data Systems.


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