Toyota is the latest lender to join the growing auto loan ABS issuance pipeline that has seen over $3 billion  issued this week.

The deal, Toyota Auto Receivables 2014-B Owner Trust, will offer a total of $1.25 billion of securities, including class A-1 $356 million of money market notes that will be retained by Toyota and three classes of notes with preliminary 'AAA' ratings from Standard & Poor's: $404 million class A-2 notes naturing in December 2016; $334 million class A-3 notes maturing in March 2018; and $124.7 million class A-4 notes maturing in September 2019.

The trust will issue a $21.3 million tranche of class B notes to be retained by Toyota.

The pool is comprised of 82,327  loans with a weighted average annual percentage rate of 2.09%. The pool has a weighted average FICO score of 756.

This is Toyota's second auto loan securitization of 2014. In its presale report, S&P stated that the collateral is simlar to that of the previous deal, completed in March: 

  • The pool' weighted average annul percentag rate, adjusted for yield supplement overcollateralization, increased to 5.00% from 4.94%.
  • The pool's weighted average loan-to-value ratio increased to 96.18% from 95.96%.
  • The percentage of loans in the pool with an original term equal to or greater than 61 months (72 months maximum term) increased to 23.01% from 22.34%.
  • The percentage of loans in the pool collateralized by used vehicles decreased to 20.71% from 21.43%.

RBS, Barclays and J.P. Morgan are names as joint bookrunners on the deal, according to a regulatory filing. Lloyds Securities , SMBC Nikko and Societe General are the co-managers.

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