Investors will get a chance to buy $706 million of prime auto loan securities in a week that has been heavily dominated by subprime auto loan securitization activity.
World Omni Financial began marketing its first auto loan securitization of the year which is expected to price next week, according to presale reports published by Standard & Poor's and Fitch Ratings .
Fitch and S&P expect to rate the money market tranche, F1+’/ A-1+’issued from the trust called WOART 2015-A.
The trust will also offer a floating and fixed rate tranche of triple-A rated class A 2 notes due July 2018. The triple-A rated class A-3 notes are due May 2020 and the triple-A rated class A4 notes are due April 2021. The senior bonds all benefit from credit enhancement of 4.55%
Also on offer is $15 million in subordinate bonds, rated double-A that are due January 2022 and benefit from credit enhancement at 2.5% Barclays is the lead manager.
The notes are backed by retail loans on new and used automobiles and light-duty trucks manufactured primarily by Toyota Motor Corporation (Toyota).
WOART 2015-A is World Omni's first public auto loan transaction in 2015. Its previous securitization, WOART 2014-B, closed in October 2014.
The pool of prime auto loans have a weighted average FICO score of 728, an improvement from the WA FICO of 724 on the issuer’s previpus deal. The 2015-A pool has also decreased the percentage of longer-term loans to 72.6% from 74.3%.
The deal began marketing in week that has largely been dominated by subprime auto loan activity. Three subprime auto loans securitizations priced, totaling $1.8 billion. DriveTime and CarFinance announced pricing on $531 million of subprime auto loan securities earlier in the week. On Thursday, Santander Consumer USA announced pricing on $1.3billion of securities. The issuer sold the 0.95-yr class A2A note at a spread of 45 basis points over Libor.