GMAC Mexicana is on the road with the country's first pure auto loan ABS in the public market, according to sources. Tipping the scales at about Ps1.4 billion ($109 million), the A note will appeal to private banking clients for its short average life of 1.4 years, said a source close to the deal. "It makes a lot of sense to pitch it to private banking," he added. That will likely be one of the areas in which joint leads HSBC and Citigroup brokerage Acciones y Valores will be focusing their efforts during a roadshow that kicks off the week of March 1. HSBC structured the transaction as well.
The A tranche is expected to garner a rating of triple-A on the national scales of Fitch Ratings and Standard & Poor's. Part of the notes' enhancement comes from a 21.6% subordination from a B tranche. S&P also rates GMAC Mexicana 'Above Average' as an auto loan servicer.