Ford Motor Credit has priced its second auto lease securitization of the year, according to a regulatory filing.
The deal, $1.5 billion Ford Auto Lease Trust 2014-B, is 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 are on various Ford brand, new vehicles.
The $280 million class A-1 notes with a weighted average life (WAL) of only about four months, priced at a fixed-rate of 0.18%. The $200 million class A-2A notes priced at a spread of 16 basis points over the eurodollar synthetic forward curve; they have a WAL of 1.16 years. The $367 million class A-2B notes priced at one-month Libor plus 16 basis points, also with a 1.16 year WAL. The $376 million class A-3 notes, with a 1.9 year WAL priced at 25 basis points over the eurodollar synthetic forward curve, while the $130 million class A-4 notes priced at a spread of 32 basis points over interpolated swaps, with a 2.26 year WAL. Fitch Ratings and Standard & Poor’s both gave all class A notes triple-A status.
Barclays is the lead underwriter on the deal.
Since late 2009, Ford Credit has gradually increased lease originations in step with sales increases. As of March 31, 2014, the issuer’s U.S. retail lease portfolio was $17.4 billion, up 33% from $13.1 billion at the same period in 2013.