Tidewater Finance Co. is readying $145.6 million of notes backed by subprime auto loan receivables, according to a presale report published today by Standard & Poor’s.

The deal, Tidewater Auto Receivables Trust 2014-A, will issue six classes of fixed-rate notes. S&P has assigned a preliminary ‘A-1’ rating the $26 million class A-1 money market notes and preliminary ‘AAA’ ratings to two other senior tranches, the $42.1 million class A-2 and $24. 86 million class A-3. 

Branch Banking & Trust is the lead underwriter.

TMCAT 2014-2 will be the third transaction S&P has rated, the last deal being TMCAT 2012-A.  Compared with the earlier deal, TMCAT 2014-2 includes major credit enhancement changes.  The subordination for the class A notes has increased to 32.90% from 16.80% while subordination of the class B notes increased to 23.55% from 11.90%.

The collateral backing TCMAT 2014-A has a weighted average seasoning of eight months, down from TMCAT 2012-A’s 11 months.  The percentage of 61-66 month term contracts decreased, to about 19.75% from 36.34%, while the percentage of 67-72 month contracts increased, to approximately 61.90% from 35.06%.

Tidewater, a Virginia corporation headquartered in Virginia Beach, was founded in 1992.

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