DriveTime Automotive Group is in the market with a $246,88 million deal called DT Auto Owner Trust 2011-2 (DTAOT 2011-2).
DTAOT 2011-2 is backed by a portfolio of motor vehicle retail installment sales contracts originated by DriveTime Car Sales, a wholly-owned subsidiary of Drivetime Automotive Group.
According to a DBRS presale report, this is the auto company’s 40th securitization since 1996 and the fourth securitization since 2007. This deal is similar to the DT Auto Owner Tust 2011-1 transaction that DBRS rated in January 2011. This was DriveTime's third ABS completed as a senior subordinate transaction.
DriveTime Car Sales is a used vehicle retailer in the U.S. that focuses on the sale and financing of vehicles to subprime borrowers, DBRS said. The auto loans are sourced through the firm’s network that comprises 86 dealerships in 23 geographic regions and 14 states.
DT Credit Corp. is the servicer of the Series 2011-2 offering and is owned by the same common shareholders as DriveTime. Meanwhile, Wells Fargo Bank is the back-up servicer for the transaction.
The transaction's initial amount of overcollateralization is expected to be 17.70% of the outstanding loan balance of advance loans, the rating agency said. The deal's subordination will be the Class B, C and D notes that are subordinated to the Class A notes.