Revenue from floorplan receivables on Hyundai, Genesis and Kia dealers will support $634.9 million in asset-backed securities to be sold to investors through the Hyundai Floorplan Master Owner Trust 2025-1.
Hyundai Capital America originated the receivables that will support the issuance, according to Moody's Ratings, which assessed the notes, along with S&P Global Ratings. Notes will be issued through a class A tranche, which will sell $500 million in notes, and the deal includes a $134 million subordination piece.
Notes that will be sold to investors have an expected legal final maturity date of Oct. 15, 2030, according to Moody's.
Moody's says at its Aaa stress level on the transaction, known as HFMOT 2025-1, is 17.50%, which is 1.50% lower than its assumption on the previous deal it rated, the HFMOT 2019-1.
Asset Securitization Report's deal database notes that HFMOT 2025-1 closes on November 5, with Barclays Capital, Lloyds Securities and SG Americas Securities are the deal's lead underwriters.
HFMOT 2025-1 includes several credit enhancement measures, such as a reserve fund, subordination and excess spread.
Three hundred forty-two accounts are in the pool, and each manufacturer has a repurchase agreement with the deal. They commit to repurchasing unsold new vehicles in inventory when the dealer terminates the agreement—if they are undamaged and unused.
Several other measures are in place to support the credit of the notes, Moody's said. For one, the portfolio includes concentration limits to support vehicle diversity. Also, HFMOT 2025-1 includes a payment rate trigger that will boost credit enhancement to the deal if the payment rate deteriorates.
Early amortization events are in place to insulate investors from performance that deteriorates worse than expected, Moody's said.
