American Honda Finance Corp. is coming to market again with another $1 billion securitization. The transaction, consisting of prime auto loan receivables, is Honda’s third offering of the year and is expected to close Aug. 20, according to a pre-sale report by Standard & Poor’s.
RBS, Barclays, and Wells Fargo Securities are underwriters for the deal.
The securitization consists of four tranches: $256.4 million of Class A-1 notes, with a preliminary A- 1+ rating from S&P; $299.3 million of Class A-2 notes, with a AAA preliminary rating; $334.3 million of Class A-3 notes rated AAA; and $110 million of Class A-4 notes, with a preliminary rating of AAA.
Loans in the transaction have a weighted average Fico score of 757, up from 756 in the captive’s previous offering. The percentage of loans with 61- to 72-month terms dropped to 14.21% from 14.9% in the prior securitization, while the percentage of loans backed by new vehicles increased to 90.3% from 89.5%.
As of June 30, Honda had $30.4 billion of loans outstanding, up 5.2% from a year ago.
