Mercedes-Benz priced its $1.124 billion auto loan securitization, according to a person familiar with the deal.
The $343 million, one-year, class A notes were priced at 13 basis points over the Eurodollar synthetic forward curve. Both the $375.87 million, 2.25-year, triple-A notes and the $110 million 3-year, triple-A notes priced at 18 basis points over interpolated swaps.
The deal, Mercedes-Benz Auto Receivables Trust 2014-1, is the issuer's first U.S. auto loan deal of 2014. It is backed by a pool of retail installment sales contracts secured by new and used Mercedes-Benz and Smart automobiles and sport utility vehicles originated and underwritten by MBFS, a wholly owned captive finance subsidiary of Daimler AG.
Deutsche Bank and Credit Agricole are joint lead underwriters on the deal.
The weighted average FICO score of the borrowers in the pool is 767, which Fitch said is consistent with recently issued MBART transactions. However, the concentrations of used vehicles increased to 72.43% from 61.38% in the most recent deal, completed nearly a year ago, in July 2013, representing the highest level in any MBART transaction to date.