Santander Consumer USA is following up on the subprime auto loan ABS it priced this week with a $1 billion securitization backed by mostly prime auto loan receivables for new/used vehicles, according to Standard & Poor’s.
The notes will be issued from the bank’s Chrysler Capital trust. Chrysler Capital is an operating unit within Santander Consumer and is not a separate legal entity.
Barclays Capital is lead manager on the deal and S&P has assigned the transaction preliminary ratings.
The 2014-B auto ABS trust is structured with $182 million of A1+’, money market fund notes and $698 million of AAA’, fixed rate class A notes. The class A2 notes are due Sept. 15, 2017, the class A3 notes are due May 15, 2019 and the class A4 notes are due Dec. 16, 2019.
At the junior level, the trust will offer $25.7 million of AA’ rated, class B notes due Jan. 15, 2020. Also on offer are $48 million, A’ rated class C notes, due May 15, 2020; and $45.2 million of BBB’ rated class D notes die Aug. 16, 2021.
Compared to the issuer’s CCART 2014-A transaction issued in March this year, the collateral for the latest deal includes a higher percentage of 73 to 75 month original term contracts. Approximately 19.87% of the pool is comprised of these longer-term loans compared to 9.83% for the 2014-A deal.
CCART 2014-B also includes commercial loans, which make up 4.99% of the pool. “These are loans made to small businesses with a personal guarantee from the business owner or principal. Such loans represent, in our view, better credit quality than the overall pool,” according to the S&P presale.