GM Financial, the captive auto-financing arm of General Motors, is in the market with its third publicly rated auto lease securitization of the year, according to Standard & Poor’s.
The $1 billion GMALT 2015-3 is the sponsor’s fifth term transaction overall and the second one rated by S&P. It is structured similarly to GM Financial's previous deal, completed in June, and includes a nonamortizing reserve amount and initial overcollateralization with target levels that are nonamortizing.
The collateral consists of monthly lease payments and base residual values of a pool of lease contracts originated by GM dealers. The leased vehicles will consist primarily of new GM-brand passenger cars, SUVs, crossover utility vehicles, and pickup trucks.
The trust will issue $122 million of class A-1 money market notes; a total of $350 million of class A-2 notes maturing in June 2018; $321 million of class A-3 notes maturing in March 2019 and $97 million of notes maturing in November 2019. The class A-2 notes will be split into a fixed-rate and a floating-rate tranche; the principal allocation between the two tranches will be determined by the pricing date.
S&P expects to rate all of the term length class A notes ‘AAA.’
Also on offer are ‘AA’ rated class B notes, ‘A+’ rated class C notes, and ‘BBB+’ rated class D notes.
S&P’s expected credit loss for the GMALT 2015-3 pool is 1.15% of the securitization value.
Deutsche Bank Securities is the underwriter.
