Harley Davidson is prepping a $500 million offering of notes backed by motorcycle receivables, according to a regulatory filing.
The Harley-Davidson Motorcycle Trust 2015-2 will issue five tranches: $75 million class A-1 notes due May 2016; $236 million class A-2 notes due January 2019, split into fixed- and floating-rate tranches; $124 million of class A-3 notes due March 2020; and $65 million of class A-4 notes due December 2022.
JP Morgan, Barclays and Citigroup are the joint bookrunners.
The pool of loans backing the trust has a balance of $649.9 million over 42,643 contracts. On average, borrowers have a principal balance of $15,300 and pay an annual interest rate of 10.67%. The loans have average original term of 73 months, and a weighted average FICO score of 711. However, 17.5% of contracts have FICOs of less than 640 and just over 12% have no down payment.
This will by Harley Davidson’s second trip to the securitization market this year. In January, it issued $700 million via HDMOT 2015-1. Loans backing that transaction have a similar average FICO of 710, which, according to Moody’s Investors Service, was among the highest of recent transactions.
