Société Générale Unit Pools German Auto Loan ABS
Red & Black Auto German 4 UG is a €1 billion securitization of new and used auto loans originated by Bank Deutsches Kraftfahrzeuggewerbe (BDK), an indirect subsidiary of Société Générale in Germany.
The portfolio’s structure is a €930 million Class A notes stack carrying a floating rate coupon and provisional triple-A ratings from DBRS and Moody’s Investors Service. There is also an unrated Class B notes tranche of fixed-rate notes sized at €70 million.
The Class A notes carry an initial subordination of 7%.
The total principal balance of the portfolio is just under $1 billion including both amortizing (€468.1 million) and balloon-payment loans (€531.9 million).
The portfolio includes 87,442 loans with a weighted average customer interest rate of 3.755. Most of the loans were for used vehicles (70,660 contracts), of which 41.2% are vehicles less than 18 months old.
The balloon loans carry a cumulative final payment balance of €234.7 million.
This is fourth issuance under the Red & Black Auto Germany platform, and is being arranged by Société Générale. The closing date is Oct. 26.