World Omni Financial priced $706 million of prime auto loan securities at levels slightly wide of Toyota Motor Credit’s deal earlier this week.
The $141 million money market tranche, rated F1+’/ A-1+’ by Fitch Ratings and Standard & Poor’s, pays interest of 0.24%, according to a regulatory filing. It has a weighted average life of 0.23 year.
The deal, TWOART 2015-A, also has three classes of senior notes with preliminary triple-A ratings: the $131 million, 1.1-year class A2-A notes pay a spread of 28 basis points over the Eurodollar synthetic forward curve; the $131 million, 1.1-year class A2-B notes pay 28 basis points over one-month Libor; the $204 million, 2.65-year class A3 notes pay 26 basis points over the interpolated swaps curve; and the $84.4 million, 3.93-year class A4 notes pay swaps plus 33 basis points.
All of the senior bonds all benefit from credit enhancement of 4.55%
The trust will also issue $14.8 million of double-A rated subordinated notes with a weighted average life of 4.03 years that pay swaps plus 60 basis points. This tranche benefits from credit enhancement at 2.5%.
WOART 2015-A is World Omni's first public auto loan transaction in 2015. Barclays is the lead manager. Its previous securitization, WOART 2014-B, closed in October 2014.
In Toyota’s bigger, $1.5 million deal, the one-year senior tranche pays just 24 basis points over EDSF and the 3.27-year senior tranche pays swaps plus 27 basis points, six basis points less than World Omni’s longer 3.93-year senior notes.
The notes are backed by retail loans on new and used automobiles and light-duty trucks manufactured primarily by Toyota Motor Corp. The pool of prime auto loans backing the latest deal have a weighted average FICO score of 728, an improvement from the WA FICO of 724 on the issuer’s previous deal. The 2015-A pool has also smaller percentage of longer-term loans, 72.6% versus 74.3%.