GM Financial is preparing to sponsor a pair of deals that will sell a total of $1.0 billion in asset-backed securities, secured by auto dealer floorplan receivables.
The trusts, GMF Floorplan Owner Revolving Trust, series 2023-1 and 2023-2, will raise $684.9 million and $342.5 million from investors, respectively, according to a pair of pre-sale ratings reports from Moody's Investors Service. The pair of trusts has some commonalities, such as a prime weighted average rate of 0.60%. They are not exactly twins, however, as GFORT 2023-1 has a legal final maturity of June 15, 2028 and has two classes of A notes—A-1 and A-2—that will issue $250 million each. It appears that the GFORT 2023-1 series added an extra $250 million tranche, according to Moody's and analysts at S&P Global Ratings.
The extra tranche is expected to be benchmarked to the three-month, Secured Overnight Financing Rate (SOFR), according to Asset Securitization Report's deal database, although more precise guidance was not available at press time. Barclays is the lead underwriter bringing the deal to market, with an expected close of June 28, according to the ASR database.
GFORT 2023-2, meanwhile, has a legal final maturity of June 17, 2030, and just one class A note issuing $250 million, Moody's said. Both deals will issue from a pool balance of $6.9 billion, from 1,801 accounts that have an average balance of $3.8 billion and an average credit line of $12.4 billion, according to Moody's.
The floorplan financing agreements finance the dealers' inventory of new and used autos and light- and medium-duty trucks and vans, according to S&P.
The issuances, and their notes, benefit from a series of credit enhancement techniques, including a reserve fund, overcollateralization, subordination and excess spread, and a cash reserve provides liquidity to the notes, Moody's said.
By tranche the protections do appear to be identical across both deals, according to S&P, citing transaction documents. Classes A, B, C and D benefit from 27.87%, 22.87%, 18.37% and 14.37%, respectively on GFORTs 2023-1 and 2023-2, according to the rating agency.
For the GFORT 2023-1 deal, Moody's plans to assign ratings of 'Aaa' to the A-1 and A-2 classes; and 'Aaa' on GFORT 2023-2's only A class; then 'Aa1' and 'Aa2' to classes B and C; and 'A1' to the class D notes.
S&P plans to assign 'AAA' ratings to the A-1 and A-2 notes, on the GFORT 2023-1; and 'AAA', to the sole A class on GFORT 2023-2. For the rest of the deal it will be 'AA' on the class B notes, 'A' on the class C notes and 'BBB' on the class D notes.
