Mitsubishi Motors has priced its first prime auto loan securitization in over two years, according to sources familiar with the deal.
Barclays Capital is the lead underwriter and Wells Fargo is the co-manager on the deal.
The deal, dubbed MMCA Auto Owner Trust 2014-A is sized at $215 million, It features two fixed-rate tranches with preliminary AAA’ ratings from Standard & Poor's. The $66 million class A2 notes with a weighted average life of 1.08 years priced at 33 basis points over the eurodollar synthetic forward curve. The $76.2 million class A3 notes with a weighted average life of 3.48-years priced at 75 basis over interpolated swaps.
A $6.4 million AA’ rated, 3.48-year tranche sold at 75 basis points over interpolated swaps and the $7.45 million, 3.38-year, A’ rated tranche priced at 110 basis points over interpolated swaps.
By comparison, World Omni priced its longer-dated A2 notes, which had weighted average life of 2.55-years, at 16 basis points over eurodollar synthetic forward curve. The class A3 notes with a weighted average life of 2.55-years, priced at 20 basis points over interpolated swaps curve and the 3.81-years, class A-4 notes priced at 26 basis points over interpolated swaps curve.
MMCA 2014-A is the fifth auto loan securitization from this series since 2009. Compared with the previous deal, completed in January 2012, the weighted average seasoning on the loans included in the 2014-A pool increased to 15.4 months from 5.4 months and the weighted average remaining term decreased to 50.4 months from 58.4 months. Loans with an original term of 61-72 months increased to 66.9% from 51.4%, however, these loans have a weighted average seasoning of 16.1 months.The weighted average FICO score decreased to 727.7 from 731.5. Loans with a FICO score higher than 700 decreased to 60.0% from 64.4%, and loans with a FICO score lower than 650 increased to 16.4% from 12.7%.