World Omni Financial Corp. is marketing a $734.04 million auto lease securitization, its first of 2014.

Bank of America Merrill Lynch is the lead underwriter.

World Omni Automobile Lease Securitization Trust (WOLS) 2014-A will issue five classes of notes, including a $104.5 million money market tranche with a preliminary ‘F1’ rating from Fitch Ratings.

Fitch has also assigned a preliminary ‘AAA’ rating to three tranches: a $305.44 million tranche with a legal final maturity of March 2017, a $213.59 million tranche maturing in September 2017, and an $80 million tranche maturing in January 2020.

All four senior tranches benefit from credit enhancement of 16.40%.

There is also a $30.13 million subordinate tranche maturing in April 2020 with a preliminary ‘AA’ rating from Fitch.

The notes will be backed by a pool of closed-end vehicle leases on new vehicles manufactured by Toyota Motor Corp. and originated by World Omni.  Consistent with prior pools, the leases backing 2014-A have a weighted average FICO score of 746, similar term distribution, and seasoning of 6.75 months.

The base residual value percentage has increased modestly to 69.9% from 68.4% for WOLS 2013-A.

Leases on the Toyota Camry and Corolla modesl total 32.2% and 13.7% in 2014-A, slightly lower than 2013-A; however, these models have produced low and infrequent residual value losses. 

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