Santander Consumer Bank plans to issue 700 million ($918 million) of securities backed by Norwegian auto loan receivables under its Bilkreditt trust.
Santander, BNP Paribas, J.P. Morgan and Deutsche Bank AG are joint lead managers on the deal.
Moody's Investors Service and Standard & Poor’s have assigned provisional ratings of Aaa’/ AAA’ to the 700 million, class A notes that are due July 2029 and have a weighted average life of 1.7 years. Initial price talk on the notes is around the high 30 basis points over the one-month Euribor, according to Informa Global Markets.
The trust will also offer NOK 572.3 million ($92.4 million) of class B notes due July 2029 that will be rated A1’/ A’ and a subordinated and unrated class C tranche worth NOK 364.2 million that will be retained by the issuer.
This is the sixth Norwegian public securitization transaction sponsored by Santander Consumer Bank.
The majority of the pool (71%) is comprised of loans that finance used cars. As of July 2014 the provisional portfolio consists of 37,756 loans with a weighted average seasoning of five months and an aggregate outstanding amount of approximately NOK 7,537 million.
In June, Santander packaged a $46 million pool of its Polish auto loan in its first public Polish securitization. Earlier this year the issuer placed 600 million ($823.6 million) of securities backed by German auto loans via its SC Germany Auto securitization trust.