Synchrony Bank, formerly GE Capital Retail Bank, upsized an offering of three-year notes backed by credit card receivables to $885 million from $660 million originally, according to a regulatory filing.
Synchrony Credit Card Master Note Trust (SYNCT) 2015-2 will issue $750 million of notes with preliminary triple-A ratings from Standard & Poor’s and Fitch Ratings at 41 basis points over swaps; a $72.96 million tranche with AA+/AA ratings and a $62.5 million tranche with AA/A ratings is being retained by the sponsor.
All three classes of notes have a weighted average life of 2.93 years.
The expected payment date of all of the notes is April 2018.
JP Morgan Securities is the lead underwriter.
The notes are backed by a pool of private-label and co-branded revolving credit card receivables generated by accounts owned by Synchrony Bank. According to S&P, the composition of retailers in this trust is more concentrated than other multi-retailer private-label trusts, as the top four merchants account for approximately 87.7% of the receivables and 81.6% of the number of accounts in the pool.
Synchrony was last in the market in March when it priced $750 million of five-year notes. The senior class A notes, rated triple-A by Fitch Ratings and S&P, yield 2.386%, or swaps plus 58 basis points.
