Alliance Data Systems Corporation completed its $467 million credit card deal from its World Financial Network Credit Card Master Note Trust, the company announced today in a press release.
The asset-backed securities were issued as part of the securitization program for Alliance Data's private label credit card banking subsidiary, Comenity Bank (formerly known as World Financial Network Bank).
The securities consist of five classes of notes with an average life of just under 7 years and a weighted average fixed-rate of 2.25 percent. Approximately $390 million of the issuance was sold to investors. A subsidiary of Comenity Bank retained approximately $77 million of the subordinated bonds. The class A Notes, which comprise $350 million of the $467 million, were rated 'AAA' Standard & Poor's, Fitch Ratings and DBRS. The class M, class B and class C subordinated bonds all achieved investment grade ratings from S&P, Fitch and DBRS.
J.P. Morgan, BofA Merrill Lynch and Credit Suisse were joint book runners for this offering.
Alliance has now completed four public term ABS offerings this year, issuing over $1.7 billion in issuance in 2012. "Our objective remains to lock in longer-term funding at attractive levels in order to achieve a balanced funding structure and build greater visibility into our earnings, while creating excess liquidity for future growth," said Charles Horn, chief financial officer of Alliance Data, in a press release today.
Moody's Investors Service said today in a presale report that it has assigned ratings to GE Capital's $565mn credit card ABS . The issuer filed an SEC registration on Oct.1. The deal structure will offer investors $500mn of class A notes that have been assigned a preliminary 'Aaa' ratings; and a $63mn class B tranche rate 'A2'.
The Trust consists of private label and co-branded credit card receivables generated on accounts originated and underwritten by GE Capital Retail Bank. Retailers which are currently included in the Trust portfolio include, JCPenney, Lowe's, Sam's Club, Wal-Mart, Dillard's, Gap, Belk and Chevron. Approximately 64% of the receivables in the portfolio emanate from accounts with an age greater than 60 months.