Ford and Ally Financial priced deals this week that bring the pace of primary Auto ABS issuance to $60 billion year to date compared to $67 billion total issued in 2012, according toStandard & Poor’s.
Ford’s $1.5 billion deal, Ford Credit Auto Owner Trust 2013-D is backed by new and used automobile, light-truck and utility-vehicle retail contracts. Bank of America, BNP Paribas and Sumitomo Mitsui Banking Corp are lead underwriters on the deal.
The deal priced its triple-A rated class A-2, structured with a weighted average life of 1.05-years at 18 basis points over the Eurodollar synthetic forward curve, according to a pricing term sheet file with the US Securities Exchange Commission.
The class A-3, triple-A rated 2.25-years notes priced at 21 basis points over the interpolated swaps curve and the triple-A, 3.37-years, class A-4 notes priced at 31 basis points over the interpolated swaps curve.
The deal also offered double-A rated class B notes structured with a weighted average life of 3.87-years that priced at 55 basis points over the interpolated swaps curve.
The single-A rated, 3.97-years class C notes priced at 70 basis points over the interpolated swaps curve. The class D notes, rated triple-B with a weighted average life of 3.97-years were not offered to investors.
The weighted average FICO of these contracts have a score of 726.
Ally Financial’s fourth securitization of non-prime quality auto loans in 2013,the $778 million Capital Auto Receivables Asset Trust 2013-4 priced its 1.30-years triple-A notes at 38 basis points over the one month Libor.
The deal’s class A-2 notes, rated triple-A, with a weighted average life of 1.90-years priced at 50 basis points over the Eurodollar synthetic forward curve. The class A-3 notes, rated triple-A, with a weighted average life of 2.66-years priced at 55 basis points over interpolated swaps curve; and the A-4 notes, also triple-A rated, with a weighted average life of 3.32-years priced at 72 basis points over the interpolated swaps curve.
The class B notes, rated double-A, with a weighted average life of 3.62-years priced at 120 basis points over the interpolated swaps curve. The class C notes, rated single-A,with a weighted average life of 3.91-years priced at 170 basis points over the interpolated swaps curve. The class D notes, rated triple-B, with a weighted average life of 4.18-years priced at 215 basis points over the interpolated swaps curve.
Like the three deals done this year the 2013-4 transaction features a revolving structure where the loan payment proceeds during the first 12 months of the transaction may be applied to the purchase of new loans to add to the collateral pool. After twelve months the deal amortizes similar to other auto loan transactions.
