DaimlerChrysler N.A. Holdings unveiled last week its new wholesale dealer floorplan issuance shelf, titled DaimlerChrysler Master Owner Trust. The new vehicle replaces the more familiar CARCO issuance shelf and offers the issuer overcollateralization savings of 122 basis points versus the CARCO trust.
Last Wednesday, DaimlerChrysler sold $2 billion of floorplan loan-backed notes through bookrunner Morgan Stanley. The single-tranche three-year offering, rated triple-A by all three rating agencies, priced at par with a coupon of six basis points over one-month Libor.
Dealer floorplan receivables are one of the safest and most predictable asset classes, with monthly payment rates near 50% for most captive auto lenders. DaimlerChrysler, for example, is averaging a 47.5% monthly payment rate through the first quarter of this year, down from the 49.9% throughout 2001.
Going back to 1997, the lowest monthly payment rate DaimlerChrysler has experienced is 36.3%, which occurred during 2000. The highest monthly rate was a 62.8% clip seen last year. An early amortization is triggered if the three-month average payment rate equals or falls below 20%.