Synchrony Bank, formerly GE Capital Retail Bank, has priced the senior tranche of a five-year credit card securitization of the year, according to a regulatory filing.
The senior tranche of class a notes issued by Synchrony Credit Card Master Note Trust's series 2015-1 was upsized by 50% to $750 million from $500 million originally. Rated triple-A by Fitch Ratings and Standard & Poor’s, it yields 2.386%, or swaps plus 58 basis points.
A tranche of class B notes, rated AA’ by Fitch and AA+’ by S&P; was upsized to $79.2 million from $48 million originally and a tranche of class C notes, rated A’/’AA-, was upsized to $62.5 million from $69 million. The filing did not disclose pricing for either tranche.
Bank of America Merrill Lynch, Mitsubishi UFG and Wells Fargo Securities were the joint lead managers of the deal, which is backed by a pool of private-label and co-branded revolving credit card receivables.
Synchrony is currently 85% indirectly owned by General Electric Capital Corp. (GECC) through GECC's ownership of Synchrony Financial, the direct parent of Synchrony Bank. GECC intends to spin off its remaining ownership in Synchrony in late 2015.
With the issuance of series 2015-1, there will be 21 series outstanding in the master note trust. Principal receivables totaled approximately $16.25 billion as of Jan. 21, 2015, according to Fitch. The active accounts designated for the trust portfolio had an average account balance of $707 and an average credit limit of $3,398. The average utilization rate for all accounts was 20.8%.
As of the same period, the average seasoning of accounts in the trust was approximately 124 months. The trust is geographically diverse, with the top five states -Texas, California, Florida, North Carolina and New York - representing approximately 34.4% of the outstanding receivables pool.
Synchrony Bank was last in the market with credit card ABS in November, when it priced $924 million f three-year class a notes at swaps plus 45 basis points to yield 1.63%.
