Ford Motor Credit priced its first auto lease securitization of the year, according to a person familiar with the transaction.
Barclays, Deutsche Bank and RBS are joint bookrunners on the 2014-1 deal, which was issued from Ford Motor Credit Auto Least Trust.
The $1.38 billion, 2014-A transaction offered a total of $1 billion of AAA’-rated, class A notes. The 1.14-year, class A-2A fixed-rate notes priced at 20 basis points over the eurodollar synthetic forward (EDSF) curve; the 1.14-year, class A-2B floating-rate notes priced at 18 basis points over one month Libor.
The class A-3 notes, with a weighted average life of 1.83-years priced 24 basis points over EDSF. The class A-4, 2.20-years notes priced at 34 basis points over the interpolated swaps curve.
Further down the credit curve, the 2.35-year, double-A rated class B notes priced at 55 basis points over interpolated swaps. The single-A rated, class C notes were retained by the issuer. Credit enhancement for the class A, B, and C notes totals 20.40%, 15.90%, and 11.70%, respectively.
The notes are backed by pool of closed-end leases originated by Ford dealers and purchased by one or more Ford Motor Credit-created titling companies directly from franchised dealers.
The leases have a weighted average FICO score of 745 and a weighted average original term of 33.2 months; 81.44% of the pool consists of leases with terms of 36 months or less, according to Fitch's presale report.
Since late 2009, Ford Credit has gradually increased lease originations in step with sales increased. As of Dec. 31, 2013, its U.S. retail lease portfolio was $14.8 billion, up 37% from $10.8 billion at the same point n 2012.