Santander Consumer USA is preparing a $409.4 million subprime auto loan resecuritization.

The offering consists of six series of notes to be issued under its Santander Drive Auto Receivables Trust. The SDART 2014-S1 through SDART 2014-S6 transactions are resecuritizations of unrated certificates issued by the SDART term transactions 2011-3 through 2012-4, according a presale report published today by Standard & Poor’s.

The lowest-rated classes in the underlying trusts (class E) are currently rated 'A' or 'A+', except for SDART 2012-4, which S&P did not rate. 

Certificates from the six SDART transactions will be sold by Santander Consumer USA Inc. to a special purpose entity, which will then sell the certificates to the respective six issuing trusts. These trusts will issue corresponding resecuritization notes (S1-R through S6-R), which will be secured by the respective underlying certificates representing the equity interest in corresponding underlying trusts.

The S1 through S6 series have been assigned preliminary ‘BBB’ ratings by S&P. All of the notes are fixed rate; the S1 notes are due August 2018, the S2 notes are due November 2018, the S3 notes are due February 2019, the S4 notes are due April 2019, the S5 notes are due June 2019 and the S6 notes are due December 2019.

Citigroup is lead manager on the deal.


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