Nissan Motor Acceptance Corp plans to offer up $500 million of securities backed by dealer floorplan receivables. Fitch Ratings rated the deal.
The AAA’ rated securities benefit from credit enhancement of 19.41%. The class A notes will be divided into two tranches, class A-1 with floating-rate coupons and class A-2 with fixed-rated coupons. The notes are due on January 2020. Barclays is the lead underwriter.
The notes are backed by a revolving pool of dealer floorplan receivables originated from credit lines made by Nissan to retail automotive dealers selling Nissan and Infiniti brand vehicles. The notes are secured by passenger and utility vehicles and light-duty trucks that are mostly new vehicles.
A pick up in new car sales has been a boon to Nissan dealers and most are currently profitable, according to the presale report. Nissan rates its dealer credit ratings into four groups: A, B, C, and D. The principal balance of group A dealer ratings totaled 65.3% at Dec. 31, 2014 and group B dealers totaled 16.0% for the trust series, according to the Fitch presale.