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.