Opel Bank, the German captive finance arm of General Motors’ GM Financial, is back with its ninth securitization of consumer prime auto loans.
E-Carat S.A., Compartment 9 is comprised of two series of rated notes of undetermined size, backed by a pool of €513.5 million in loans.
Standard & Poor’s has issued preliminary structured finance ratings of ‘AAA’ for the Class A notes that will comprise 91.9% of the portfolio, and ‘AA’ for the Class B notes making of 2.8% of the collateral. The Class A notes are supported by 9.24% credit enhancement, while the B notes are at 6.44%.
The transaction also includes an unrated subordinate tranche that totals 5.3% of the notes structure, and is being retained.
E-Carat houses receivables from loans issued by captive-finance contracts originated by Opel Bank GmbH, formerly known as GMAC Bank, at franchised and company-owned Opel dealerships. Approximately 64% of the loans are for new vehicles.
Opel Bank remains a wholly owned, indirect subsidiary of GM Financial.
The loans in the collateral pool carry a principal balance of €10,527 and weighted-average seasoning of 8.6 months (which is longer than the last two E-CARAT transactions).
The average interest rate is 5.11%. Credit enhancement consists of an excess spread of 3.8%, subordination and a liquidity reserve equal to 1.2% of the Class A and B note balance or 1.13% of the asset balance.
There are no delinquent accounts in the pool.
The collateral consists of both fully amortizing loans and balloon note loans that contain a large final payment. Balloon loans comprise 75.5% of the portfolio. Balloon payment contracts have original terms of 36 or 48 months. Half will mature between August 2018 and August 2019.
This is Opel Bank’s ninth public transaction securitizing its German loan bank. Receivables are purchased at a discount of the higher of 5% and the contract interest rate.