NextGear, a unit of Cox Enterprises, is marketing its second offering of the year of notes backed by inventory financing for used auto dealers, according to rating agency reports.
NextGear Floorplan Master Owner Trust, Series 2016-2 will issue four tranches of notes with preliminary ratings from DBRS, Moody’s Investors Service, and Standard & Poor’s. Two classes of senior notes totaling $300 million, one fixed-rate and one-floating rate, are rated triple-A. Two tranches of subordinate notes totaling $28 million, one floating and one fixed, are rated single-A. All of the notes are expected to mature in September 2019.