Fifth Third Bank priced $500 million of securities backed by prime auto loans on Tuesday, according to a person familiar with the transaction.
The deal’s $114 million money market tranche was priced to yield 0.22$; it has a weighted average life (WAL) of 0.32 years and is rated ‘A-1’/’P-1’ by Moody’s Investors Service and Standard & Poor’s.
Credit Suisse is the lead underwriter.
A $155 million, triple-A class with a WAL of 1.15 years priced at nine basis points over the Eurodollar synthetic forward rate;
A $157 million, triple-A class with a WAL of 2.4 years priced at 15 basis points over the interpolated swaps curve;
A $55.25 million, triple-A class with a WAL of 3.54 years priced at 20 basis points over the interpolated swaps curve;
A $10 million subordinated class with a WAL of 3.63 years and ‘A’/’A2’ rating priced at 57 basis points over the interpolated swaps curve;
An $8.75 million subordinated class with a WAL of 3.63 years and ‘BBB’/’Baa’ rating priced at 110 basis points over the interpolated swaps curve.
The deal is Fifth Third’s first auto loan securitization since 2008.
