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Mercedes-Benz Financial Services prices $1.01B prime auto-lease ABS

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Daimler AG this week priced the first U.S. auto-lease ABS transaction since July, when it closed on the $1.01 billion Mercedes-Benz Auto Lease Trust (MBALT) 2020-B deal on Tuesday.

The MBALT deal, the second prime-auto lease securitization of the year for Daimler AB, included coupons ranging from 0.31% to 0.5% for three classes of term notes totaling nearly $850 million, according to market data published on Finsight.com.

All the notes were triple-A rated by S&P Global Ratings and Fitch Ratings.

Also marketed to investors was a $157 million money-market tranche of Class A1 notes.

The notes were secured by the account receivables from 28,897 leases underwritten by Mercedez-Benz Financial Services USA – a subsidiary of Daimler AG (OTCMKTS: DMLRY) – as well as the future resale values of the all-new leased vehicles with an average securitization value of $40,884.


The lease securitization – via Mizuho Securities, Credit Agricole, Wells Fargo, Barclays and BofA Securities – was the first auto-lease ABS since Tesla Inc. priced a $709 million transaction on July 30 and Ford Motor Credit offered a $1.4 million lease ABS deal on July 21.

Also on Tuesday, S&P published a presale on a planned $1.03 billion prime auto-lease securitization sponsored by Hyundai Capital America. The Hyundai Auto Lease Securitization Trust 2020-B has preliminary AAA ratings for three term-note tranches totaling $830.4 million, as well as a short-term A-1+ rating from S&P for a $142 million money market tranche and an AA+ rating for a Class B subordinate tranche totaling $52.94 million.

The Hyundai transaction is expected to close Sept. 23, with JPMorgan serving as lead underwriter.

The deal is the 20thoverall lease transaction for Hyundai Capital America, and the second for 2020.

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