SunTrust Banks Inc. is entering the auto securitization market for the first time, according to a presale report from Standard & Poor’s Ratings Service. The $1 billion transaction, secured by prime loans on new and used automobiles and on light-duty trucks, is expected to close June 25, according to the S&P report.
“We don’t do subprime,” a SunTrust spokesman told Auto Finance News. “This transaction will allow us to continue to fully serve our clients while diversifying our funding sources and optimizing our balance sheet.”
SunTrust will issue four classes of senior notes and three classes of subordinate notes. Last year, Atlanta-based SunTrust expanded its auto unit to offer wholesale and indirect banking products to dealers in Chicago, Boston, and Dallas. SunTrust had $9.6 billion of retail auto outstandings, as of March 31, according to S&P.
