Ford Moto Credit Co. has priced $1.5 billion of securities backed by both new and used automobile, light-truck and utility vehicle retail contracts.
The deal, Ford Credit Auto Owner Trust (FCAOT) 2014-B, issued a $394.1 million A1 money market tranche that was priced to yield 0.18%, according to a person familiar with the transaction,
Three other tranches of class A notes were given triple-A ratings from Fitch Ratings: an the $538.7 million A-2 tranche with a weighted average life (WAL) of 1.05 years has a spread of 15 basis points over the eurodollar synthetic forward curve (EDSF), the $464.5 million A3 tranche with a WAL of 2.2 years, yields 18 basis points over the interpolated swaps curve, and the $102.44 class A-4 tranche with a WAL of 3.24 years yields 25 basis points over the interpolated swaps curve.
The $47.36 million AA’ rated class B notes have a 3.73 WAL and are priced at 35 basis points over the interpolated swaps curve. The $31.57 million A ’rated class C notes yield 55 basis points over the interpolated swaps curve, with a WAL of 3.81 years.
The lead underwriters for the deal are Morgan Stanley, Barclays, and RBC Capital Markets.
FCAOT 2014-B is Ford Credit’s second pricing of the year; the earlier, $1.61 billion deal, dubbed FCAOT 2014-A, was priced in January. The triple-A rated tranche with a WAL of 1.05-years priced at 18 basis points over the EDSF; tThe triple-A rated notes with a WAL of 2.25-years priced at 20 basis points over the interpolated swaps curve; and the 3.34-year, triple-A’s priced at 27 basis points over the interpolated swaps curve
The pool’s of collateral backing the latest deal has weighted average FICO score of 726, marginally lower than 728 for the 2014-A pool.
Ford Credit has issued multiple transactions each year since the 1980s.