Lloyds Bank priced its $600 million U.K. credit card deal via the Penarth Master Issuer Plc's medium-term note program.

The card securitization received a provisional rating of 'Aaa' from Moody's Investors Service. It is the eighth issuance under Penarth's medium-term note program.

The deal is backed by credit-card receivables from the Penarth receivables trust. The top-rated bonds were priced at 75 basis points over the three-month Libor, Bloomberg reported,

The assets comprise receivables arising under designated MasterCard, Visa and American Express revolving credit-card accounts that Bank of Scotland and Lloyds Bank have originated or acquired in the U.K. under the Halifax, Bank of Scotland and Lloyds brands.

According to a Moody's presale report, the deal involves a two-step debt issuance process that will first require the proceeds of the rated notes to be sold to investors to finance the issuer's purchase of a global loan note.

The loan-note issuer will then use the cash to acquire an undivided beneficial interest in the Penarth receivables trust.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.