Volkswagen is marketing 743.3 million ($950 million) of securities backed by German auto loans, according to Standard & Poor’s.
Mitsubishi UFJ Securities International is leading the transaction.
Private Driver 2014-4 UG will issue 691 million of AAA’ rated securities and 22.8 million of A+’ rated securities. Both bonds mature on September 2020. The class A notes are structured with credit enhancement at 9% and the class B notes have credit enhancement at 5.95%.
The structure also includes 28.9 million of unrated subordinated notes.
The pool is comprised of 48,008 borrowers with 48,472 loan contracts. The loans have a weighted average original term of four years and on average have a remaining life of 3.2 years. Most of the loans, or 67% of the pool, are for new vehicles.