Joining CarMax Business Services and Huntington National Bank, Santander Consumer USA is planning to issue a subprime auto securitization called Santander Drive Auto Receivables Trust 2012-6 worth $1.25 billion, according to a Securities and Exchange Commission filing related to the offering.
Volkswagen is also planning its Volkswagen Auto Loan Enhanced Trust 2012-2. Credit Suisse and BofA Merrill Lynch are joint bookrunners on the transaction to be rated by Moody's Investors Service and Standard & Poor's.
The company came to market with the 2012-1 earlier this year, as reported by ASR.
Deutsche Bank Securities,Citigroup Global Markets and Santander are the underwriters on the deal. Other underwriters solely with respect to the Class A notes are Credit Suisse and JPMorgan Securities.
The deal is backed by motor vehicle retail installment sale contracts and/or installment loans that are secured by new and used cars, light-duty trucks and vans, most of which are loans of subprime borrowers.
Auto-related ABS issuance reached $77bn through late September, as U.S. auto sales and auto loan originations remain strong.