A pool of leases on autos, light duty trucks and utility vehicles will provide collateral for at least $1.4 billion in asset-backed securities (ABS), coming to market from the GM Financial Automobile Leasing Trust 2025-1.
GM Financial is the sponsor and servicer of the deal, which is scheduled to close on February 12, according to a Securities and Exchange Commission filing and Asset Securitization Report's deal database. The deal's initial principal amount can be upsized to $1.7 billion.
The GMALT 2025-1 deal has 48,860 underlying leases in the pool, Fitch Ratings said. Just 24.4% of the contracts have original terms longer than 36 months, the lowest level for the GMALT platform, something that Fitch analysts consider a credit positive.
The transaction will issue seven classes of notes to investors, and they benefit from several layers of credit enhancement, including excess cashflow, overcollateralization, subordination and a reserve account, according to the SEC filing. Most of the tranches are class A notes, and the deal includes class B and C notes, according to the SEC filing.
Fitch analysts note that all the class A notes—A1 through A4—have credit enhancement coverage that represents 18.8% of the pool balance. Classes B and C benefit from coverage representing 14.35% and 10.25% of the pool's balance, respectively.
As for the notes' maturity dates, the A1 notes have a final maturity of Feb. 20, 2026; Classes A2A and A2B mature on May 20, 2027; the A3 notes mature on Feb. 21, 2028; classes A4 and B mature on Feb. 20, 2029 and the class C notes mature on July 20, 2029, according to the SEC.
The class A2B notes, and only those notes, are benchmarked to the one-month Secured Overnight Financing Rate.
Société Générale, BNP Paribas, CIBC Capital Markets, and TD Securities are joint bookrunners on the transaction. Barclays, Drexel Hamilton, RBC Capital Markets and SMBC Nikko are co-managers for the class A notes, says the SEC.
Fitch assigns F1+ to the A1 notes; AAA to the A2 through A4 classes; AA to the class B notes and S to the class C notes.
