Toyota Motor Credit Corp. is sponsoring a $1 billion asset-backed securitization secured by leases on new Toyota and Lexus vehicles, only the second public auto lease securitization issued from TMCC since 1998.
The trust, Toyota Lease Owner Trust, 2021-B, will issue notes backed by a certificate representing a special unit of beneficial interest in a pool of the auto leases, according to Fitch Ratings.
Some 40,755 leases are underlying assets on the deal, with an aggregate securitization value (SV) of $1.1 billion. The largest proportion of leases was on SUV/CUVs (63.2%), followed by cars (29.4%), trucks (6.3%) and vans (1%).
In terms of geographic distribution, California accounts for largest portion, 19.8%, followed by New York (11.7%), Florida (9.1%), New Jersey (7.8%) and Texas (7.5%) rounds out the top five states represented among the leases. All together, the top five states account for 56% of the leases in the pool.
The pool is also well diversified by model, with the Lexus Rx accounting for 16.3% of the pool, and the top five models accounting for 58.1% of the pool. Compared with the 2021-A transaction, the concentrations were 17.2% of Lexus models and 61.2% of the top five models.
Toyota had granted lease payment deferrals up to 120 days to eligible borrowers between March 2020 and June 2020, according to Fitch. As of June 30, 2020, TMCC had resumed it deferral practices that were in place pre-COVID. Fitch noted that none of the receivables in the transaction had a payment deferral related to the coronavirus pandemic.
MUFG Securities Americas, Inc., is the underwriter on the transaction, which features a capital structure with four classes. Fitch expects to rate the $133 million class F1+sf. Classes A-2 and A-3 amount to $383 million, with expected ‘AAA’ ratings, and ‘AAA’ on the $100 million A-4 class.
