Mercedes-Benz Financial Services USA is preparing its first captive-finance loan receivables securitization of the year, in a $1.24 billion transaction that could be upsized to $1.5 billion.

The Mercedes-Benz Auto Receivables Trust 2016-1 is to be split into five tranches of Class A notes, including a short-term money-market slice of A-1 bonds, according to a free-writing prospectus filing with the Securities and Exchange Commission.

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