Ford Motor Credit is planning its fourth securitization of auto dealer inventory financing of the year.
The $1.046 billion Ford Credit Floorplan Master Owner Trust A (Series 2014-4) is backed by a revolving pool of receivables that were originated in connection with dealers purchasing and financing primarily Ford-manufactured new and used car, truck, and utility vehicles, according to a presale report published by Standard & Poor’s.
It will issue two tranches of notes with preliminary AAA’ ratings from S&P; a $500 million fixed-rate A-1 tranche and a $500 million floating-rate A-2 tranche. There is also a $45.75 million tranche of fixed-rate notes with a preliminary AA’ rating and two unrated fixed-rate tranches.
All five classes of notes have an expected final payment date of Aug. 15, 2017 and a final maturity of Aug. 15, 2019.
Credit Suisse Securities, Deutsche Bank Securities, HSBC Securities, and Goldman Sachs are the lead underwriters.
As of June 30, 2014, the trust's portfolio consisted of 3,332 designated dealer accounts and approximately $17.91 billion in principal receivables with an average dealer balance of approximately $5.38 million per account. The weighted average spread above the prime rate that Ford Credit charges the dealers in the floorplan pool is 1.27% per year.
Ford Motor Credit was last in the market with a $400 million dealer floorplan securitization in June.
