Santander and Ally Financial priced $2.1 billion of bonds backed by subprime auto loan receivables on Wednesday.
Santander upsized its deal,Santander Drive Auto Receivables Trust 2014-2 to $1.35 billion deal from $1 billion.
The structure sold $275.62 million, 0.94-year, fixed-rate triple-A notes priced at 30 basis points over EDSF; the $125 million, floating-rate, 0.94-year, triple-A notes priced at 32 basis points over interpolated swaps.
The capital structure also offered $163.55 million of triple-A notes with a weighted average life of 1.82-years that priced at 35 basis points over EDSF.
Further down the credit curve, the deal’s 2.47-year, double-A rated class B notes priced at 90 basis points over interpolated swaps. The 3.30-year, single-A rated notes priced at 125 basis points over interpolated swaps; and the 3.94-year, triple-B notes priced at 140 basis points over interpolated swaps.
The issuer retained $81 million of 3.98-year, double-B rated notes.
The notes will be backed by loans on new and used automobiles, light duty trucks and vans to subprime borrowers.
Deutsche Bank Securities and Citigroup are lead underwriters on the deal. Morgan Stanley and Wells Fargo Securities are the co-managers.
Ally Financial also priced a $750 million securitization of non-prime auto loans.
The deal, Capital Auto Receivables Asset Trust 2014-2 offered investors $642.2 million of class A notes with preliminary triple-A ratings from Moody's Investors Service. The class A1 notes, with a weighted average life of 1.29-years priced at 30 basis points over one-month Libor. The class A3 notes, with a weighted average life 2.58-years, priced at 49 basis points over interpolated swaps and the class A4 notes with a weighted average maturity, priced at 57 basis points over interpolated swaps.
The class B notes with a weighted average life of 3.53-years priced at 85 basis points over interpolated swaps curve. The 3.83-year, single A, class C notes priced at 110 basis points over interpolated swaps.
At the triple-B level, the class D notes, with a weighted average life of 4.11-year,priced at 140 basis points over interpolated swaps.
Bank of America Merrill Lynch, Deutsche Bank and JP Morgan are the lead underwriters on Ally’s sixth public transaction under the CARAT program since the financial crisis.
