Hyundai is marketing $990.5 million of securities backed by prime auto loans.
The series 2015-C is the issuer’s third prime auto loan securitization this year. The series 2015-A securitization closed in January 2015, and series 2015-B closed in April 2015.
SG Americas Securities, Citigroup, HSBC and JP Morgan are the lead underwriters.
Standard & Poor’s assigned a preliminary rating of ‘A-1+’ of class A-1 notes with a legal final maturity of September 2016; and ‘AAA’ ratings to to $395 million of class A-2 notes due November 2018; ‘AAA’ rating to $255 million of class A3 notes due February 202; and ‘AAA’ ratings to $83.6 million of class A-4 notes due November 2021.
At the subordinate level the trust will offer $18.3 million of ‘AA+’ rated class B notes that are November 2021; $27.5 million of ‘AA-’ rated class C notes due November 2021; and $22.45 million of ‘A-’ rated class D notes due June 2022.
Hyundai did not include class D notes in the previous transaction issued this year. The notes provide the class C notes with subordination of 2.20%, whereas series 2015-B's class C notes did not have subordination.
The class D also increases subordination on all the other tranches relative to the previous transaction. Subordination on the A notes increased to 6.70% from 4.80% and subordination for the class B notes increased to 4.90% from 3.00%.
Loans with terms of 61-to-72-months increased to approximately 50.3% of the pool from 49.7% in the previous deal. However the 2015-C pool, like 2015-B, includes approximately 5.0% of 73-75 month term collateral.
The loans are also of slightly weaker credit quality. The overall weighted average FICO score decreased to 742 from 745; and the percentage of loans by balance with a FICO score greater than 750 decreased to 39.1% from 42.3%.