The Verizon Master Trust series has returned to execute its sixth asset-backed securitization, intending to raise about $1 billion in bonds from investors, secured by revenues from mobile device payment plans.
A collateral pool of 43.4 million receivables, between series 2023-5 and 2023-6 will secure the notes, according to ratings analysts from Fitch Ratings. The Asset Securitization Report's deal database suggests that the series 2023-5 and 2023-6 will issue $700 million and $300 million, respectively and expects the deal to close on September 20.
Not only are the securitization amounts different for the two series; so are the managers, according to the ASR database. While Citigroup Global Markets is manager on the series 2023-6, Barclays, BNP Paribas and Wells Fargo Securities are managers on the 2023-5. The database also notes that the 2023-5 series will issue four classes of notes. Fitch and Moody's Investors Service, which also plans to rate the issued notes, say that the 2023-6 series will issue three tranches.
Virtually all of the attributes in both VZMT 2023-5 and 2023-6 are identical, according to Fitch. They have the same final statistical cutoff date (August 7), the same aggregate principal balance ($23 billion) and the same weighted average (WA) remaining installments, 26 months. Moody's says the 2023-6 notes all have the same legal final maturity date, Sept. 22, 2031.
There are other similarities, including credit enhancements tranche by tranche. The classes A1A, B and C have enhancement levels of 19.25%, 13.00% and 9.25%. In the case of 2023-5, which has the class A1B—giving it the fourth class of notes not present in the 2023-6 deal, enhancement is 19.25%, the same as the most senior class of notes, according to Fitch.
On the 2023-6 deal, Fitch says that it expects to assign ratings of 'AAA' to the A1A notes'; 'AA' on the class B notes and 'A+' on the class C notes. The ratings on the 2023-5 notes are 'AAA' on the A1A and A1B notes; 'AA+' on the class B notes and 'AA-' on the class C notes.
Moody's says that the 2023-6 notes will get ratings of 'Aaa' on the class A notes; 'Aa1' on the class B notes and 'Aa3' on the class C notes.
