Volkswagen upsized its latest auto loan securitization to $1.2 billion from $1 billion. The deal priced on Wednesday.

Fitch Ratings assigned preliminary ratings to the deal, Volkswagen Auto Loan Enhanced Trust 2014-1. The capital structure offered three tranches of ‘AAA’-rated notes and one ‘F1+’ rated money market fund tranche.

The class A1 money market tranche pays interest of 0.19%; the class A2 notes with a weighted average life of 1.10-years priced at 15 basis points over eurodollar synthetic forward curve; 2.42-year, class A3 notes priced at 19 basis points over the interpolated swaps curve; and the 3.52-year, class A4 notes priced at 23 basis points over interpolated swaps.

JP Morgan and RBS Securities are the lead underwriters.

Pricing was inside of levels on an $849 auto loan securitization that World Omni priced last week, despite the fact that Omni's deal was slightly longer dated. Omni's A2 notes with a weighted average life of 2.55-years priced at 16 basis points over the eurodollar synthetic forward curve; its class A3 notes with a weighted average life of 2.55-years priced at 20 basis points over interpolated swaps; and the 3.81-year class A-4 notes priced at 26 basis points over interpolated swaps.

Volkswagen's deal benefits from credit enhancement of 3.10%. The class A1 notes are due May 2015, the class A-2 notes are due March 2017, the class A-3 notes are due October 2018 and the class A-4 notes are due September 2020.

VALET 2014-1 is backed by loans secured by new and used Volkswagen and Audi cars and light-duty trucks and underwritten by Volkswagen Credit, the indirect wholly owned captive finance subsidiary of Volkswagen Group of America.

The weighted average FICO score for 2014-1 is 763, consistent with the 2013-2 (762) and 2013-1 (763) deals.  New vehicles total 69.9% of the pool, slightly lower than 2013-2 (71.06%) deal. The remaining 30.06% consist of used and pre-owned vehicles.

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