Volkswagen will stage a return to market with its $1 billion retail auto loans deal issued from its auto loan enhanced trust.
The deal, VALET 2013-2 has been assigned preliminary ratings by Fitch Ratings and Standard & Poor’s. It is structured with $202 million of ‘A-1+’/ ‘F1+’, class A1 money market fund notes.
The deal will also offer $335 million, ‘AAA’/ ‘AAA’ –rated, class A1 notes with a weighted average life of 1.04-years; $353 million, ‘AAA’/ ‘AAA’ –rated, class A2 notes with a weighted average life of 2.34-years; and $110 million, ‘AAA’/ ‘AAA’ –rated, class A3 notes with a weighted average life of 3.48-years.
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.