Volkswagen Bank GmbH plans to sell 1.25 billion ($1.42 billion) of bonds backed by German auto loan receivables. The transaction, called Driver Master SA-Compartment 1, has been assigned provisional ratings from Moody’s Investors Service and DBRS.
The series 2015 deal offers 1.13 billion class A notes that benefit from initial credit enhancement (CE) of 9.45% and are rated Aaa’/’AAA’ by Moody’s and DRBRS, respectively. The 52.5 million class B notes are rated Aa3’/’A’ and benefit from initial credit enhancement of 5.25%. All of the notes are due May 25, 2024.