Synchrony Bank, formerly GE Capital Retail bank, increased the size of its first credit card securitization, SYNCT 2014-1, by $264 million to $924 million, according to a pricing document.
The three-year class A notes, issued under Synchrony’s master trust, which was formerly the GE Capital Credit Card Master Note Trust, sold at a spread of 45 basis points over interpolated swaps, yielding 1.63%.
The three-year class B notes priced at 65 basis points over interpolated swaps, yielding 1.83% and the three-year class C notes priced at 75 basis points over interpolated swaps, yielding 1.93%.
Fitch Ratings and Moody’s Investors Service expect to assign AAA’/ Aaa’ ratings to the class A notes, AA’/ Aa2’ ratings to the class B notes and A’/ A2’ ratings to the class C notes.
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.
GE Capital Retail Bank changed its name to Synchrony Bank on June 2, 2014. The bank offers mostly private-label credit card accounts. The private-label credit card account business consists of revolving consumer credit account programs established with retailers that have been approved by the bank. The bank currently originates co-branded credit cards for Wal-Mart, Sam's Club, JCPenney and Gap, among otehrs.
With the issuance of series 2014-1, there will be 23 series outstanding in the master note trust. This deal, however is the first to be issued under the Synchrony brand name.