Fifth Third Bank's $1 billion auto loan securitization is expected to price mid-week, according to a pricing term sheet.

Barclays, Citigroup and Credit Suisse are lead underwriters on the deal called Fifth Third Auto Trust 2013-1 is structured with $712 million of ‘AAA’ rated notes.

The shorter dated, 1.08-years, class A-2 notes are being offered with price talk between 8 to 19 basis points over the Eurodollar synthetic forward curve (EDSF). The 2.16-years, triple-A notes are being talked between 19 to 36 basis points over interpolated swaps. The 3.18-years, triple-A notes are being offered with price talk between 36 to 39 basis points over interpolated swaps.

The series 2013-1 is backed by prime, fixed-rate vehicle installment sales contracts that are secured by new and used vehicles by Fifth Third and its subsidiaries.

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.

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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