Hyundai Capital plans to add a $1.2 bullion securitization to the growing auto loan ABS pipeline.

So far, the first week of January has offered up $3 billion backed by luxury auto lease, $2.5 billion of prime auto loans and $1 billion in subprime auto loan.

Hyundai’s deal, which will be rated by Fitch Ratings, is structured with $928 million of ‘AAA’ rated notes that will be sold over three tranches. The class A-2 are due October 2017, the class A3 notes are due April 2019 and the class A-4 notes are due July 2020. The notes are all benefit from credit enhancement of 7.70%.

The capital structure also includes $22.6 million of ‘AA’ rated class B notes, $34 million of ‘A’ rated class C notes and $27.7 million of ‘BBB’ rated class D notes.

Barclays Capital is the lead underwriter.

The notes are secured by a pool of new and used automobile vehicle loans manufactured by Hyundai Motor Company  and Kia Motor Co. and originated through Hyundai Capital, which will also act as the servicer. The issuer is an owned subsidiary of Hyundai Motors America.

The pool is backed by loans with  a weighted average seasoning of 8.4 months, slightly higher than Hyundai’s 2013  and 2014 securitizations. The weighted average FICO score is 743 and new vehicles account for 94.5% of the pool. Low annual percentage rates (APR) loans dominated the pool. At a a weighted average 3.22%, this transaction has the lowest of any Hyundai securitization ever.

Hyundai has issued 23 securitizations since 2001. 

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