Mercedes-Benz Financial Services USA plans to issue $1.26 billion of auto lease-backed notes, according to a Fitch Ratings presale report.

The deal, Mercedes-Benz Auto Lease Trust 2013-A U.S will be backed by payments on a pool of closed-end vehicle leases on new Mercedes-Benz (MB) brand vehicles manufactured by Daimler AG.

The capital structure will offer a money market fund tranche sized at $299 million and rates ‘F1+’; $498 million of A-2 notes rated ‘AAA’; $369 million of A-3 notes rated ‘AAA’; and $96.36 million of A-4 notes rated ‘AAA’.

Bank of American Merrill Lynch is lead underwriter on the deal.

Fitch said that  2013-A has  a weighted average FICO score of 780, stronger that the issuer’s previous issue 2012-A.  The initial credit enhancement totals 16.35%, an increase of 10 bps from 2012-A, growing to 19.25% (75 bps higher than in 2012-A) of the initial securitization value.

 

 

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