GMAC is planning a U.K. auto loan securitization, according to presale reports.

The deal, E-Carat 4, will offer investors two tranches of bonds totaling £100 million ($163.52 million). The class A notes rated ‘Aaa’ by Moody’s Investors Service and ‘AAA’ by DBRS has 8.5% credit enhancement and is due Sept 2022. The class B tranche is rated ‘Aa2’/’AA’, has credit enhancement at 5.0% and is due September 2022.

Lloyds Bank, Bank of America Merrill Lynch and RBC Europe are the lead managers.

E-Carat 4 is backed by a pool of loans made to 46,118 borrowers; 81.3% of the pool is comprised of new car loans and $18.7% of the pool is comprised of used car loans. The loans have a weighted average seasoning of four months and weighted average remaining term of 53 months.

GMAC was last in the market with a UK auto loan securitization in February. That deal, E-Carat 3, was rated ‘AAA’ / ‘AAA’ respectively by Fitch Ratings and Standard & Poors. The notes were structured with credit enhancement at 12.3%. The class B notes, rated ‘AA’/ ‘AAA’ were structured with credit enhancement at 7.3%.

GMAC's deal follows a relatively busy pipeline of European auto loan securitizations. On Wednesday, Volkswagen priced its £1.2 billion Driver 2 auto loan securitization. The issue was sold in two tranches at the lower end of the price range, according to a VW press release. The Class A Notes were placed at a price of 1-month Libor plus 42 basis points and the Class B Notes at plus 90 basis points. The notes were placed with 41 investors.

Driver 2 is the largest sterling-denominated U.K. auto loan securitization ever, according to VW. It is also nearly twice as large as the next biggest transaction, which was completed in 2012 and totaled around £575 million.  

Mercedes is also expected to price its Silver Arrow 5 transaction this week. Initial talk on the €744 million ($963 million), 1.3-year senior tranche is for a range of 28 basis points to 30 basis points over the one month Euribor, according to Informa Global Markets.

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