VW Credit, in the preliminary stages of a dealer loan-backed transaction, is readying an amendment to its April 7 filing with the Securities & Exchange Commission, according to sources familiar with the transaction.

Via newly established trust Volks-wagen Dealer Finance, VW will issue two classes of floating-rate notes backed by floorplan loans to auto dealerships.

The transaction will be managed by Morgan Stanley Dean Witter, according to the prospectus. Further details were unavailable.

In February, VW announced the winding down of its 1996, $375 million dealer-floorplan transaction, under trust name Volkswagen Credit Auto Master Trust. The principle to the certificate holders is expected to be paid in full by June 15.

Like the 1996 deal, the pending transaction is a master trust structure; though unlike the 1996 trust, which sold asset-backed certificates, this one will distribute notes.

Last May, Volkswagen AG, the parent company of VW Credit, priced a $500 million auto lease-backed deal in Europe.

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