First Tennessee Capital Markets is shopping the second-ever auto ABS backed by loans originated and serviced by a federal credit union, sources confirmed. The deal, which pools loans from Security Service Federal Credit Union, is coming off of First Tennessee's FTN Financial Auto Securitization Trust shelf, dubbed FFAST for short.
The $150 million two-tranche series 2004-A offering consists of a $142.5 million triple-A class and a $7.5 million single-A rated B class. The entire transaction, which is fixed-rate and with average lives of 1.35 years, will price with a spread over EDSF. Pricing is expected this week. The deal has been in the market for two weeks, but has been held up over credit enhancement levels as well as First Tennessee's annual fixed-income conference, held at its headquarters in Memphis the week before last. Standard & Poor's is the only agency rating the deal. Investors have soft-circled yields on the private negotiated transaction and pricing is seen shortly, according to sources familiar with the offering.