Ford Motor Credit is offering another $833 million of notes backed by dealership inventory financing from its master trust.

Ford Credit Floorplan Master Owner Trust A (Series 2016-1) consists of three classes of notes with preliminary ratings from Standard & Poor’s and a final maturity of February 2021.

The  $750 million of class A notes is split into two tranches of notes rated ‘AAA’, one paying a fixed rate of interest and one paying a floating rate; the notes benefit from credit support of 24.38%. The $34.3 million of class B notes are rated ‘AA+’ and have credit support of 20.88%. The $49 million of class C notes are rated ‘A+’ and have credit support of 15.88%. There is also a $29.4 million unrated tranche of notes with 12.88% credit support.

Barclays Capital Inc., BNP Paribas Securities Corp., J.P. Morgan Securities, and RBC Capital Markets.

The collateral consists of receivables secured by vehicles from designated revolving floorplan accounts offered by Ford Credit to Ford Motor Co.'s retail automobile dealers. Each receivable is an obligation in which the dealer agrees to repay the loan amount that it incurred when purchasing a vehicle for its inventory. The related vehicle secures the receivable. The dealer generally repays the related receivables when it sells the underlying vehicle.

Our view of the relative financial strength of the dealers that have accounts designated to the trust (the underlying obligors of the floorplan loans) and Ford's sizable market share in the U.S., which mitigates the relatively high concentration of light trucks in its product mix.

Ford was last in the market with dealer floorplan notes in in August 2015, when it issued $431 million of notes with an expected maturity of 2018 and $382 million of notes with an expected maturity of 2020. Those two series were the first two be offered in both fixed-rate and floating-rate tranches. 

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