U-Haul International (UHI) is in the market with a $155 million securitization called U-Haul S Fleet Series 2010-1. The offering is backed by a pool of new and to-be-acquired box trucks.
Moody's Investors Service assigned the transaction a provisional rating of 'Baa2'. This is UHI’s second securitization of the box trucks in its rental fleet that comes after the Series 2007-BT-1 deal. This offering falls under the template created by Series 2007-1 with a few differences, according to Moody's.
The most notable have to do with the truck mix and the collections/reserve account. In this case, UHI will be permitted to commingle collections between monthly payment dates instead of remitting on a weekly basis. Offsetting this is a rise in the reserve account requirement to 10 months of interest from nine months.
Also, Moody's said that unlike Series 2007-1, this deal is structured without a monoline financial guarantee. Series 2007-1 was initially rated 'Aaa (sf)' due to the financial guaranty. The current rating on Series 2007-1 of 'Baa3 (sf)' reflects the deal's inherent underlying quality.
Meanwhile, Series 2010-1 has been structured to a slightly higher 'Baa2 (sf)' standard.
Proceeds from note issuance, according to the rating agency, will be used to buy added eligible box trucks, fund the interest reserve account, box truck purchase account and pre-funding period interest deficiency account. The notes' credit support is offered by the over-collateralization from the advance rates that are different in each truck type, an interest reserve account and pre-funding interest reserve account.
Meanwhile, VW Credit is in the market with its sixth public deal backed by auto leases since 2002. The $750 million transaction is managed by Barclays Capital and Deustche Bank Securities.
The firm has also issued seven ABS backed by retail auto loans, according to Moody's
The five-tranche Volkswagen Auto Lease Trust 2010-A transaction has an OC tranche that is not rated.
Another deal from Credit Acceptance Corp. is boosting issuance in the auto sector. The $100.5 million three-tranche transaction is managed by Deutsche Bank and Wells Fargo Securities.
For more preliminary details on the two auto deals, please the link below from the ASR Scorecard database.
