Demand for Toyota’s senior bonds backed by prime, fixed rate auto loan receivables increased the offering size by over $86 million to $865 million, according to a deal document.
Toyota Auto Receivables Owner Trust 2014-C priced the AAA’/ Aaa’ rated, one-year class A2 notes at 18 basis points over the Eurodollar synthetic forward. The two-year, class A3 notes were sold at a spread of 17 basis points over swaps and the three-year, A4 notes priced at 18 basis points over interpolated swaps.
Standard & Poor’s and Moody’s Investors Service assigned preliminary ratings to the deal. Bank of America Merrill Lynch is lead manager in the deal.
The transaction is the issuer’s third deal this year. With this deal, Toyota will have issued $4.3 billion year to date.
The 2014-C collateral pool has high credit quality, similar to the issuer's previous deals. The obligors' weighted average FICO score is 758, and approximately 80% of the obligors by balance have FICO scores greater than 700, according to S&P.
Of the 22.6% of the pool's longer term loans — loans of 61-72 months —only 20.5% have remaining terms of that duration due to seasoning. The collateral pool includes no loans with original maturity terms greater than 72 months or borrowers with FICO scores below 620.
According to S&P, year-to-date volumes for retail auto-loan ABS issuance is $55 billion, with transactions backed by prime loans accounting for $33 billion.