USSA Federal Savings Bank filed a shelf with the S.E.C. on Dec. 27 for an auto-loan backed program worth a total $10 billion.
The prospectus was short on details apart from the originator’s use of the USAA Auto Owner Trust vehicle and Mayer Brown as legal counsel for the structure.
The last transaction issued off USAA Auto Owner Trust came in September. Amounting to a total $500 million, that transaction had a short-dated A-1 tranche for $142 million and longer-dated A-2, A-3 and A-4 tranches for $172 million, $125 million, and $52 million, respectively. Moody’s Investors Service and Standard & Poor’s rated the short piece ‘Prime-1(sf)’ and ‘A-1+ (sf)’, respectively. The longer senior notes garnered triple-A from both agencies. The senior pieces are enhanced by a 5.56% subordination.
The joint leads for the transaction were Citigroup Global Markets and Royal Bank of Scotland, with Credit Suisse and Deutsche acting as co-manager.
The sponsor was also cited in a research report by Citigroup last November as one of a number of auto ABS issuers calling their deals within two months of the eligible call date.