World Omni Financial Corp. priced a $734.04 million auto lease securitization, its first of 2014.
Bank of America Merrill Lynch is the lead underwriter of the deal, World Omni Automobile Lease Securitization Trust 2014-A.
There are two $152.72 million tranche with preliminary AAA’/’AAA’ ratings from Fitch Ratings and Moody’s Investors Service and a weighted average life of 1.29 years; one priced at 23 basis points over the Eurodollar synthetic forward curve and one the other at 21 basis points over one-month Libor.
A $213.5 million tranche with triple-A ratings and a weighted average life of 2.18 years priced at 30 basis points over interpolated swaps and another $80 million 2.51-year, triple-A tranche priced at swaps plus 36 basis points.
All of the senior tranches benefit from credit enhancement of 16.40%.
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 the 2014-A deal 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 World Omnis previous deal, WOLS 2013-A.
Leases on the Toyota Camry and Corolla models 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.
