Volkswagen Bank GmbH is planning its second public securitization of French auto loan receivables. The 500 million ($549.12 million) transaction, called Driver France Two, will be rated by Moody’s Investors Service and Fitch Ratings.
The deal offers three tranches of floating-rate asset backed notes: 465 million ($510 million) of class A notes are provisionally rated Aaa’ and AAA’ by Moody’s and Fitch, respectively. These senior notes benefit from 8% credit enhancement. There are also 16.2 million ($17.72 million) class B notes, rated A+’ and A1’, that benefit from 4.8% credit enhancement. The remaining 15.3 million ($16.8 million) subordinate level notes have not been rated by either agency.
All of the notes are due March 2022.
They are backed by 66,961 non-delinquent auto contracts distributed through VW Group auto dealers in France with a weighted average seasoning of 13.6 months. New car loans make up 72.35% of the pool, while the remaining 27.65% consists of used cars.
Commerzbank and BNP have joint leads on the deal.
The latest deal comes 20 months after Driver France FCT Compartment 2013-1. The senior and junior tranches of the sponsor’s earlier deal also received investment grade ratings. Both rating agency presale reports said that the positive performance of the previous transaction influences the high grade rating of the latter. They also cited the securitization experience of Volkswagen Bank as a strength for the transaction.