Ford Motor Credit sold its $1.09 billion auto loan securitization. The bookrunners on the deal were JPMorgan Securities, Morgan Stanley and RBS Securities, according to a Reuters report.
The deal was met with strong investor demand but its shortest dated, 0.31-year tranche priced wider to get investors to buy the securities, the report said.
Ford Motor Credit's $285 million of 'A1+' 0.31-year short-term notes priced at a wider spread of four basis points over Libor, compared with an initial spread guidance of flat to two basis points over Libor, market sources said.
The deal's $203.8 million tripple-A one-year notes as well as the $382 million triple-A two-year notes priced at 15 basis points over the Eurodollar swap futures. The price guidance on the notes was 20 to 25 basis points.
A third triple-A 3.32-year Ford tranche, which met with considerable demand, was priced at 25 basis points over interpolated swaps versus an initial guidance of 30 to 35 basis points.
Ford's latest offering also included smaller, lower-rated issues made up of $32 million of double-A rated 4.12-year notes that priced at 65 basis points, $21.4 million of single-A rated 4.21-year notes that priced at 90 basis points and $21.4 million of triple-B rated 4.21-year notes that priced at a spread of 175 basis points, the Reuters report said.