World Omni Financial Corp. is in the market with $687.59 million of notes backed by auto leases, according to Fitch Ratings.
It’s the sponsor’s first auto lease securitization since September 2014.
World Omni Automobile Lease Securitization Trust 2015-A will issue $103 million of money market notes and three classes of notes totaling $556.36 million with preliminary credit ratings of AAA.’ All four tranches benefit from credit enhancement of 16.4%.
There is also a $28.23 tranche with a preliminary AA’ rating and credit enhancement of 12.8%.
Credit Suisse is the lead underwriter.
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. The pool has a slightly lower weighted average FICO score than the 2014 transaction at 737, according to Fitch. The base residual value percentage has also decreased modestly to 69.5% from 69.9% for the 2014 deal.
The two largest models, Toyota Camry and Corolla, total 27.5% and 17.2% in 2015-A compared to 32.2% and 13.7% in 2014-A; these models have produced low and infrequent residual value losses.
While the lease maturities in 2015-A are heavily concentrated at the end of 2017 and in the first half of 2018 (57.9%), the overall portfolio has a weighted average original term of 36.4 months, in line with the 2014 deal.