Nissan Canada began marketing a new C$660 million ($665 million) auto loan securitization deal this week, NIF-T 2010-1.
The capital structure offers a C$300 million, triple-A rated, senior medium term notes. The notes are backed by a portfolio of retail leases originated by Nissan on Nissan or Infiniti private passenger automobiles, sports utility vehicles (SUV), mini-vans and pick-up or light-duty trucks.
The Class A-2 Notes (together with the Class A-1 Notes) are supported by preferential access to interest and principal payments from the issuance of the Class B-1 Notes equal to 5.6% of the total Class A Notes issued. The Class A-2 Notes are subordinated to the Class A-1 Notes with respect to timing of principal payments since the Class A-1 Notes must be paid in full prior to any repayment of principal on the Class A-2 Notes.
Previously, NIF-T issued Series 2001-1 Notes in September 2001, Series 2003-1 Notes in February 2003, Series 2004-1 Notes in February 2004, Series 2005-1 Notes in March 2005 and Series 2006-1 Notes in February 2006. The lease portfolios for Series 2001-1, 2003-1, 2004-1, 2005-1 and 2006-1 are separate and distinct from Series 2010-1.
Enhancement levels for the Series 2010-1 Notes are higher than the previous transactions reflecting current valuations of Nissan and Infiniti vehicles in the used car market since the most recent public issuance of notes by NIF-T.