Mitsubishi Motors Credit of America (MMCA) is in the market with a prime auto ABS deal called MMCA Auto Owner Trust 2011-A (MMCA 2011-A). Barclays Capital is lead underwriter on the $278.39 million securitization.
According to a Moody's Investors Service presale report, this is MMCA's third retail loan transaction since 2009. MMCA previously directly sponsored offerings in the ABS market from 1997-2002. %
From 2005-2008, collateral originated by MMCA was securitized in the Merrill Lynch Auto Securitization Trust (MATS), which is a trust that is sponsored by Merrill Lynch Bank. The collateral breakdown is as follows: car (58.04%); cross-over (38.87%); SUV (2.85%) and truck (0.24).
Center One Financial Services is the servicer while U.S. Bank is the master servicer on this six-tranche offering. Wilmington Trust Co. and Union Bank are the owner and indenture trustees on the deal, reprectively.
Moody's said that the MMCA 2011-A offering is structured as an amortizing owner trust. The rating agency’s cumulative net loss expectation is 3.25% and the volatility proxy 'Aaa' level is 15.00% for the MMCA 2011-A asset pool.
Mitsubishi's transaction adds to the pile of auto ABS deals that have been coming to market thus far this year.
Just yesterday StructuredFinanceNews.com reported that CarMax is in the market with CarMax Auto Owner Trust 2011-1, which is worth $650 million. For the story on CarMax's offering, please click on this
Other deals in the market are Brazos Higher Education Authority's $1.52 billion transaction led by Citigroup Global Markets, according to a Dow Jones report.
GMAC Mortgage Servicer Advance Series also has a $250 million bond led by Barclays currently marketing. Both deals are expected to price this week, the report said.
