Volkswagen upsized its retail auto loan ABS by $250mn to $1.25bn and priced the deal Thursday afternoon, to strong investor demand.
The deal, VALET 2013-1 is backed by loans secured by new and used Volkswagen and Audi cars, minivans, and light-duty trucks and underwritten by VCI, the indirect wholly owned captive finance subsidiary of Volkswagen Group of America (VWGA).
Fitch Ratings and Moody’s Investors Service rated the deal. The 1.15-year, ‘AAA’/ ‘Aaa’ notes priced at 5 basis points; the 2.45-year, ‘AAA’/ ‘Aaa’ notes priced at 10 basis points and the 3.58-year, ‘AAA’/ ‘Aaa’ notes priced at 13 basis points.
CarMax, another prime auto loan issuer in the market this month priced its deal the week ending Feb.8, at softer spreads. That deal’s 1.1-year, ‘AAA’ notes at 10 basis points; the 2.45-year, ‘AAA’ rated notes priced at 13 basis points over interest rate swaps; and the 3.74-year, ‘AAA’ notes priced at 20 basis points.
