Yamaha Motor Corp. will hit the market before year-end, issuing an approximate $200 million motor sport vehicle-backed deal, said a company source. Chase Securities will underwrite the transaction.
The portfolio includes loans to dealerships backed by assets such as motorcycles, snowmobiles, all terrain vehicles, watercrafts, and motor sport vehicle accessories/machinery parts.
Deutsche Financial Services, also an issuer of recreational-type vehicle loans, is sub-servicer on the deal, and had provided financing to the dealerships in the portfolio.
According to an S-1 filing with the Securities & Exchange Commission, the deal will be structured in three parts, with class A, class B, and class C certificates. All three classes will be issued as floating-rate securities. The proceeds will be used to pay down the Yamaha Motor Master Trust 1998-1 series.
Yamaha last tapped the market in May of 1999, with a $215 million floating-rate deal structured in two parts: a $200 million, triple-A rated A1 class priced at 25 points over the one-month Libor, and a $14 million, single-A rated A2 class priced at 48 points over the one-month Libor, according to Thomson Financial Securities Data. Chase was sole manager on the transaction.
"If you look at the 2000 deal, it's going to look an awful lot like the 1999 deal," the company source said.