Subprime auto lender, JD Byrider plans to return to the securitization market with its $121.4 million CarNow Auto Receivables Trust 2013-1. The lender brought its inaugural issue to market last year.
Standard & Poor’s has assigned preliminary ratings to the deal. The capital structure includes ‘AA’- rated class A notes; ‘A’- rated c;ass B notes; ‘BBB’-rated class C notes; ‘BB’-rated class D notes and single-B rated class E notes.
Initial credit enhancement to class A, B, C, D and E notes is 47.1%; 39.5%, 32.2%, 28.9% and 25.9% respectively. According to S&P, these credit support levels provide coverage of slightly more than 2.15x, 1.75x, 1.40x, 1.25x, and 1.10x its expected net loss range of 21.75%-22.25% for the class A, B, C, D, and E notes, respectively.
The subprime pool being securitized is 8.5 months seasoned and all of the loans have an original term of 50 months or less (with the exception of four loans that have a term of greater than 50, but no more than 53, months).