GE Commercial Distribution Finance Corp. plans to issue $442 million of deal floorplan asset backed noted from its GE Dealer Floorplan Master Note Trust, Series 2013-1 structure.
Fitch Ratings has assigned preliminary rating to the notes. The capital structure includes $400 million of ‘AAA’ –rated notes; $8.42 million of ‘A’- rated noted; and $12.63 of ‘BBB’-rated notes. It will also offer $21 million of D class notes that have not been rated by Fitch. Barclays is lead underwriter.
The collateral securing the notes consists primarily of direct interests in the floorplan receivables (FR) generated under revolving credit agreements among 2,000 manufacturers, 24,000 dealers, and 13 separate product lines, according to the Fitch presale.
GE’s master note trust has experienced minimal net losses going back to 2004. The monthly trust default rate was 0.13% in January 2013. Monthly payment rates (MPR), agings, and delinquencies are currently stable, having steadily improved in the past couple years.
According to Standard & Poor’s figures, year-to-date dealer floorplan ABS issuance is on track to match last year’s $14 billion full year issuance. Once GE issues its, year to date issuance for the asset class will pass $5 billion.
Securitization volumes in the asset class have been boosted by rising vehicle sales and the refinancing of maturing transactions.