Ford Motor Credit Co. priced its revolving extended variable program ABS, Ford Credit Owner Trust 2014-REV1, today to strong investor demand.
According to an Interactive Data report the deal was upsized to $1 billion from $780 million. The five-year, triple-A notes priced at swaps plus 50 basis points and the five-year AA’ notes priced at swaps plus 65 basis points.
Bank of America Merrill Lynch, JP Morgan, SMBC Nikko and Bradesco BBI are lead managers on the deal.
Standard & Poor’s, who assigned the deal preliminary ratings, said the transaction is the first to be issued under Ford’s REV notes program. The deal is backed by a revolving pool of prime retail sales contracts for mostly new vehicle financings.
The initial pool consists of loans with a weighted average FICO of 726. The weighted average original term for the loans is 62.9 months and 42.6% of the pool is comprised of loans with original terms greater than 60 months.
During the five-year revolving period the pool must maintain a weighted average FICO score of at least 700. Receivables with an original term of more than 60 months are limited to 60% of the pool and receivables from used vehicles are limited to 20% of the pool. The loans included in the pool can have terms no greater than 72 months; and cannot be more than 30 days delinquent.