Ford Motor Credit Co. plans to issue two securitization deals backed by dealer floorplan receivables from its Ford Credit Floorplan Master Owner Trust.
The Series 2014-1 and Series 2014-2 will issue fix and floating rate notes that have been assigned preliminary ratings by Standard & Poor’s. The presale report did not indicate how the tranches would be sized.
The Series 2014-1 deal is structured with a class tranche split into fixed and floating rate notes that are rated AAA’. The fixed-rate class B notes are rated AA’. The trust will issue class C and D notes that have not been rated.
For the Series 2014-2 deal, the class A, floating rate notes are rated AAA’ and the class B fixed rate notes are rated AA’. Fitch will not rate the class C and D notes issued from the trust.
Citigroup, Credit Agricole, Credit Suisse and Goldman Sachs are named as the lead underwriters o both deals in the presale reports.
Dealer floor plan financing allows dealers to borrow against retail inventory. Payments to the trust are driven when the dealership sells a vehicle to the consumer, and the volume of vehicles financed on dealership lots are driven by manufacturer production volumes.
The receivables backing the Ford deal were originated in connection with dealers purchasing and financing primarily Ford- manufactured new and used car, truck, and utility vehicles, according to the presale report.