Ford Motor Credit to Issue $500M Dealer Floorplan ABS

Ford Motor Credit is expected to close its fourth auto securitization on December 21, according to presale reports.

The transaction, backed by a $500 million pool of revolving floorplan accounts, is 31.7% smaller than the captive’s last securitization — $732.2 million of notes — which was issued in November.

However, the transaction has a 10-year revolving period with an expected final payment date on Nov. 15, 2028, compared with three years for the November issuance.

Collateral consists of receivables secured by vehicles from revolving floorplan accounts offered by Ford Credit to Ford dealers, according to S&P Global Ratings. Each receivable is a dealer obligation to repay the loan amount, which dealers typically repay as they sell the underlying vehicle, according to S&P.

The trust’s portfolio consists of 3,163 designated dealer accounts with an average dealer balance of $5.7 million per account as of September, according to S&P. Also, the captive’s trust has an estimated $18.04 billion in principal receivables.

Underwriters for the issuance include Citigroup Global Markets, Barclays Capital, Goldman Sachs, and J.P. Morgan Securities.