Volkswagen priced its upsized $1.5 billion retail auto loans dubbed VALET 2013-2 today.
The deal was originally sized at $1 billion. It has been rated by Fitch Ratings and Standard & Poor’s.
The $502 million, AAA’/ AAA’ rated, class A1 notes with a weighted average life of 1.04-years priced at 14 basis points euro dollar synthetic forward benchmark.
The $530 million, AAA’/ AAA’ rated, class A2 notes with a weighted average life of 2.34-years priced at 21 basis points over the interpolated swaps curve. The $164 million, AAA’/ AAA’ rated, class A3 notes with a weighted average life of 3.48-years priced at 31 basis points..
The deal is backed by new and used Volkswagen and Audi cars, minivans and light-duty truck. The weighted average FICO of the loans included in the pool is 762, “consistent with recently issued VALET transactions,” and “indicate a strong borrower,” said Fitch in its presale report.
Barclays and Deutsche Bank are lead managers on the deal. BofA Merrill Lynch, Citigroup, Goldman Sachs, HSBC Securities and the Royal Bank of Scotland are co-managers on the deal. It is expected to price this week, according to a person familiar with the deal.