Nissan Motor Acceptance Corporation priced a securitization of retail auto loans deal that began marketing earlier this week.
The deal sold $800 million of auto ABS securities; it was originally sized at $833 million, according to a pricing term sheet filed with the US Securities and Exchange Commission.
The deal is Nissan’s third retail auto loan securitization of 2013 and looks much like previous deals. However it will be the first deal to include loans with 73 to 75 month loan terms, according to a Fitch Ratings presale report.
Fitch has assigned the deal preliminary ratings. The class A-2, AAA’ rated notes with a weighted average life of 1.01-years priced at 14 basis points over the Eurodollar synthetic forward curve. The AAA’-rated, class A-3 with a weighted average life of 2.31-years priced at 20 basis points over the interpolated swaps curve. The A-4 notes, rated AAA’ with an average weighted average life of 3.84-years priced at 27 basis points over the interpolated swaps curve.
Nissan has increasingly added longer term loans to their securitization pools. Fitch said that loans with terms greater than 60 month increased in Nissan’s latest deal to 49.03% and loans that fell in the 73 to 75 months made up 4.09% of the pool. Historically, losses tend to rise as loan terms increase.
The weighted average FICO for the pool backing the deal is 758 and new vehicle loans make up 96.36% of the pool. BofA Merrill Lynch, Citi and Mizuho are the joint lead managers on the deal.