Fifth Third Bank priced its upsized $1.25 billion auto loan securitization backed by prime, fixed-rate vehicle installment sales contracts yesterday afternoon.

Barclays, Citigroup and Credit Suisse are lead underwriters on the deal called Fifth Third Auto Trust 2013-1 offered investors $891 million of ‘AAA’ rated notes. The deal was originally sized at $1 billion.

The shorter dated, 1.08-years, class A-2 notes are being offered with priced at 25 basis points over the Eurodollar synthetic forward curve (EDSF). The notes priced around 6 basis point wide of initial guidance.

The 2.16-years, triple-A notes that were talked at 19 to 36 basis points over interpolated swaps, priced at 33 basis points. The 3.18-years, triple-A notes, which were offered with price talk between 36 to 39 basis points over interpolated swaps, priced at 40 basis points.

A $359 million, money market fund tranche priced with a coupon rate of .25%


In contrast to the issuer’s $500 million 2013-A transaction issued last March, the terms of the loans included in the pool are a bit riskier, which is reflected in the wider pricing of the latest deal.

2013-A priced its 1.15-year, triple-As at 9 basis points over the EDSF; the 2.4-years, triple-As priced at 15 basis points over the interpolated swaps; and the 3.54-years, triple-As priced at 20 basis points.

The issuer has lowered the weighted average FICO to 765 down from 800 in the March deal and the weighted average seasoning has increased to 18 months from approximately 5.5 months. The average annual percentage rate on the loans in the pool also increased to 4.30% from 2.55% and LTVs are also higher at 90.6% compared to 80.5%.

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