Textron Financial Corp. returned to the ABS market last week for the first time in three and a half years to a cool reception as its scheduled $1 billion private dealer floorplan deal was downsized to $750 million and saw its spreads widened at the last minute. The Banc of America Securities led deal, priced its three-year senior tranche at 12 basis points over one-month Libor last Wednesday, three basis points outside of talk set in the nine basis point area over Libor. The single-A rated subordinated class, meanwhile, priced inside of expectations at 32 basis points over Libor, versus talk in the mid 30 basis point area over Libor.

The triple-A rated 2.96-year A class, originally slated to be $957 million, was decreased to $718 million and the single-A rated B tranche, originally intended to be $43 million, was cut to $32 million.

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