Mercedes-Benz has issued two new deals from its dealer floorplan master trust structure.
The deals, Mercedes-Benz Master Owner Trust, Series 2012-A and Series 2012-B will offer investors a combined $750 million of bonds backed by mainly new vehicles. Both deals have been assigned a preliminary ‘AAA’ rating by Fitch Ratings.
The collateral securing the notes will consist of a revolving pool of dealer floorplan receivables from credit lines made by Mercedes-Benz Financial Services USA to retail automotive dealers authorized by Daimler AG to sell Mercedes-Benz and smart brand vehicles, according to a Fitch presale report.
Initial credit enhancement for the notes in both deals is 18.62%, consisting of 18.00% required overcollateralization amount and a 0.62% reserve account. Structural features include overcollateralization step up and early amortization triggers, which mitigate risks stemming from dealer/manufacturer defaults/bankruptcies.