Auto ABS in 2013 rose to $3.6 billion after a $940 million nonprime transaction from Ally Financial.
A preliminary deal prospectus filed today with the Securities and Exchange Commission stated the issuance is backed by a pool of fixed rate retail installment sales contracts and direct purchase money loans used to finance the purchase of new and used cars and light trucks. All the retail installment sales contracts and direct purchase money loans are the obligations of nonprime credit quality obligors.
The transaction consists of $789.6 million of class A notes, $41.6 million of class B notes, $61.6 of class C notes, and $46.8 of class D notes. The issuer is expected to retain the three lower classes of notes. Bank of America Merrill Lynch, Barclays Capital, and Citigroup are the deal’s lead underwriters.
This Ally transaction comes on the heels of yesterday’s $1.36 billion prime auto deal by Nissan, which followed Santander’s $1.25 billion subprime deal. Standard & Poor’s anticipates $105 billion of auto ABS in 2013, up from last year’s $92 billion.
