Ford Motor Co.’s European captive finance company, FCE Bank, is planning a euro denominated auto loan securitization.
Globaldrive Auto Receivables 2015-A is FCE Bank's 18th publicly rated German transaction. The trust will issue sell 543.5 million of securities backed by German auto loan receivables.
All of the loans are fully amortizing; however 77% loans in the pool will have a large final installment in the form of a balloon payment at maturity.
Standard & Poor’s assigned an AAA’ rating to the 500 million of class A bonds that benefit from 8.7% credit support. The class B notes will be rated AA+’ and benefit from credit enhancement of 5.7%; the class C notes will not be rated. All of the notes are due April 20, 2023.
The pool is comprised of 33,913 borrowers with 35,254 loan contracts. Two types of loans, which differ in repayment profile and original term, are included in the pool. The "standard" loans have an original term of up to 72 months and generally are fully amortizing. The "trade cycle management" loans have an original term of up to 48 months and contain a large balloon payment (approximately 50%) due at the end of the contract term. All purchased loan receivables have fixed rates of interest and borrowers can use them to finance new, used, or ex-demo vehicles.
Barclays Bank, Deutsche Bank, HSBC and Lloyds Bank are the lead managers.