TCF Bank is marketing its third auto loan securitization, according to Standard & Poor’s
The $250 million TCF Auto Receivables Owner Trust 2015-2 is backed by retail installment sales contracts originated by TCF Bank's subsidiary, Gateway, and secured by new and used automobiles and light-duty trucks.
Credit Suisse Securities is the lead underwriter
S&P expects to assign ‘AAA’ ratings to three tranches of senior notes maturing in January 2019, April 2020 and April 2021 with initial credit enhancement of 11.15%.
The pool of loans used as collateral is geographically diverse and has a weighted average FICO score of 680, weighted average seasoning of 2.5 months, and a weighted average loan-to-value ratio of 109.1%, according to S&P. Approximately 21% of the loans are backed by new vehicles. The longest loan term is 75 months.
Gateway is an indirect auto finance company headquartered in Anaheim, Calif. It originates and services primarily used retail auto loans acquired from franchised and independent dealers across the U.S.
Gateway's management team has been managing and servicing auto loans for more than 30 years. Before Gateway, the team ran Onyx Acceptance Corp. for 11 years, which was then purchased in 2005 by Capital One Financial Corp. In May 2007, Gateway was formed with the sole focus of originating indirect auto loans. In November 2011, TCF Bank acquired Gateway to grow and develop its auto finance business.