DBRS has assigned provisional ratings to the DSC Floorplan Master Owner Trust Series 2011-1 notes.  The DSC Floorplan Master Owner Trust Series 2011-1 transaction represents the first issuance out of a newly created master trust and the second securitization of Dealer Service Corp’s (DSC) wholesale receivables.   The trust assets collateralizing the series’ issuance include a revolving pool of receivables originated in connection with the purchase and financing by motor vehicle dealers of predominantly used automobiles and trucks.   Dealer Services Corp. is the sponsor and originator of the receivables.  DSC was formed in 2005.  The management team has considerable experience in this specialized sector within the wholesale market.  DSC funds loans to independent dealers in order for  those dealers to access vehicles at used vehicle auctions.  This market is a well established part of the automotive industry, with two very large auction companies: Manheim Inc., ADESA Inc. and a host of smaller or regional auctions like ABC Auctions and a large number of smaller independent auctions.   Credit enhancement for the Series 2011-1 Class A notes is 17.75%.  This amount is derived from 10.0% subordination of notes, 7.50% residual interest and 0.25% reserve account.  Since this is a master trust, investors are expecting to be repaid on the expected date.  If there were an amortization event, enhancement will build over time since the Class A Notes are paid first before the subordinate notes receive any principal.  The reserve account is also calculated as a percent of the initial notes and will grow as a percent of the outstanding notes when those notes are repaid.  The structure will consist of a three year interest only period followed by an expected principal repayment on the expected principal payment date  (March 15, 2014). If an  early amortization event occurs, noteholders could be paid back their principal earlier than (March 15, 2014). If this were to occur, the senior most class of notes, Class A, will be paid 100% of the principal before the next senior class of notes, Class B. Dealer Services Corp. (DSC) is in the market with its DSC Floorplan Master Owner Trust Series 2011-1 transaction.The over $252 million deal is  the firm's first issuance out of a newly created master trust and the second securitization of Dealer Service Corp’s (DSC) wholesale receivables, according to a DBRS presale report.   The transaction is backed by receivables originated in connection with the purchase and financing by motor vehicle dealers of predominantly used automobiles and trucks.   According to the rating agency, DSC was formed in 2005 and its management team is considered to have considerable experience in this specialized sector within the wholesale market. The firm finances loans to independent dealers so those dealers to access vehicles at used vehicle auctions. This market is a well established part of the automotive industry, with two very large auction  companies: Manheim, ADESA  and a host of smaller or regional auctions like ABC Auctions as well as a large number of smaller independent auctions.   The structure comprises of a three-year interest only period followed by an expected principal repayment on the expected principal payment date  on March 15, 2014, DBRS said. The indenture trustee on the transaction is  Deutsche Bank Trust Co. Americas and the owner trustee is Wilmington Trust Co. while the back-up servicer is Portfolio Financial Services Corp. 

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