Ford Motor Credit priced its $1.6 billion prime auto loan ABS, Ford Credit Auto Owner Trust 2015-A, according to a regulatory filing.
The class A-2, fixed rate notes, structured with a weighted average life (WAL) of 1.0 year, pay 25 basis points over the Eurodollar synthetic forward curve to yield 0.81% and the floating rate, 1.0-year notes pay at 25 basis points over one-month Libor.
The 2.3-year, class A3, senior notes priced at 26 basis points over interpolated swaps and the A4 notes, structured with a WAL of 3.36 years , priced at 28 basis points over interpolated swaps.
By comparison, California Republic Bank priced the 1-year, class A-2 notes from its $350 million prime auto loan deal, CRART 2015-1, at 40 basis points over the Eurodollar synthetic forward curve, yielding 0.88%.
CRART 2015-1 is the only other prime auto loan deal to price in what has been a relatively quiet month; instead, auto-related issuance has been been dominated by subprime deals, with deals totaling $2 billion issued so far in March.
Ford’s deal priced more in line with the Feb. 25 Toyota Motor Credit $1.25 billion deal called Toyota Auto Receivables 2015-A. The issuer priced the 1.0 year, class A-2 notes at 24 basis points over the Eurodollar synthetic forward curve and the 2.08-year, class A-3 notes priced at 25 basis points over interpolated swaps.
Year to date retail auto-loan ABS issuance is $17.4 billion, with prime accounting for $9.3 billion and subprime accounting for $6.1 billion, according to Standard & Poor’s.
Ford Credit Auto Owner Trust 2015-A senior tranches tranches all benefit from credit enhancement of 5.5%. The issuer has so far this year completed one other auto loan deal and a dealer floorplan deal.
J.P. Morgan Securities is the lead underwriter.