World Omni Financial Corp. is preparing to issue $744 million of bonds backed by leases on Toyota branded automobiles and light-duty trucks, according to Fitch Ratings presale report.
JP Morgan is lead manager on the deal, World Omni Automobile Lease Securitization Trust 2013-B. The transaction is structured with five class of notes. The class A1, money market fund notes are rated ‘F1+’; the class A2, A3 and A$ notes are rated ‘AAA’. The structure will also offer $15.61 million of ‘AA’ rated, class B notes.
The securitized loans have a weighted average FICO of 725. Approximately 95% of the pool is made up of new vehicles.
Fitch notes in the presale report that the pool has a higher concentration of extended-term loans (loans with original terms greater than 60 months) when compared to deals issued prior to 2012. These loans have historically produced higher loss rates, according to the presale report.
World Omni’s portfolio and securitization delinquecny and loss performance has improved since 2009.
“The improvement has been driven by stronger credit quality of originations and enhanced servicing policie, support from the improving U.S. economic recovery and stanle used vehicle sale,” said Fitch.