Price talk on Macquarie Bank's $500 million auto loan and lease securitization falls a few basis points wide of where the last U.S. auto lease securitization priced.
The deal, SMART ABS Series 2014-1 US, is backed by a pool of lease contracts, hire purchase contracts and loan contracts on motor vehicles located in Australia.
The fixed rate, class A-2a, triple-A rated tranche with a 1.10-year tenor is being talked at around 30 basis points over the eurodollar synthetic forward (EDSF) curve. The 1.10-year, A-2b notes are being talked at 40 basis points area over one-month Libor.
The 2.25-year, A-3a notes are being talked at swaps plus 40 basis points. The 3.64-year, A-4a and A-4b notes are being offered at swaps plus 55 basis points and 55 basis points over one month Libor, respectively.
Price guidance on the notes falls several basis points wide of an auto lease securitizatio that Ally Bank priced in February. The class A-2 notes, also issued as a combination of floating and fixed rate notes, with a 1.25-year weighted average maturity, priced at 20 basis points over one-month Libor and 23 basis points over the EDSF curve, respectively. The 2.40-years, class A4 notes priced at 37 basis point over EDSF.
In addition to the U.S. dollar-denominated notes, Macquerie is also offering Australian denominated class B, C, D and E notes.
J.P. Morgan and RBS are joint lead managers on the US dollar portion of the deal.
Macquarie Leasing established the SMART securitization program in March 2002.