Retail loans on new and used Toyota motor vehicles are backing the notes in the World Omni Auto Receivables Trust 2021-C, which is slated to issue $878.6 million in auto asset-backed securities.
Barclays Capital is lead underwriter on the deal, according to Fitch Ratings, and the institution arranged for the trust issue up to $1.1 billion in notes, potentially. Should the trust upsize the capital structure, it will be supported by a statistically similar pool to the current one, with a potential aggregate pool balance of $1.2 billion.
The pool adheres to a high quality of loan selection that World Omni started in 2017-B, when it began to remove all contracts with FICO scores below 650 and focused solely on Toyota makes, Fitch said. The pool contains some 37,177 loans, which have an average principal balance of $24,221, and about eight months of seasoning before they were included in the pool.
In terms of the composition of the loan pool by geographic dispersion, Florida is the largest, with 49.3% of loans in the pool. After that comes Georgia (17.7%); North Carolina (15.2%); Alabama (8.6%) and South Carolina (6.7%).
The senior-subordinate capital structure is expected to earn a ‘F1’ rating on the A-1 class; ‘AAA’ ratings on the A-2, A-3 and A-4 classes; a ‘AA’ rating on the class B notes.
