AmeriCredit Auto's $725 Million TALF Eligible Deal Sold - Source
July 07 2009 - 12:40PM
Dow Jones News
AmeriCredit's $725 million deal eligible for cheap funding under
a Federal Reserve program has sold, according to a person familiar
with the deal.
The deal, dubbed AMCAR 2009-1, has five tranches and is led by
Deutsche Bank and Credit Suisse.
Its largest triple-A rated tranche worth $166 billion sold at
155 basis points over a futures benchmark.
Tuesday is the deadline for investors to get cheap funding under
the Fed's Term Asset-Backed Securities Loan Facility, or TALF
program. More than $12 billion in new issues has emerged ahead of
this round of financing.
The TALF program was set up to revitalize the securitization
market, which had gone into hibernation at the height of the credit
crunch.
There has been about $43 billion in asset-backed securities'
issuance in the second quarter, according to data provider
Dealogic. The bulk of the issues have been financed using the Fed's
loans.
Earlier Tuesday, Honda Motor Co.'s (HMC) $1.827 billion deal
sold, according to a person familiar with the matter.
The four-part deal, dubbed, HAROT 2009-3, is led by Banc of
America Securities and Credit Suisse.
The largest triple-A rated portion of $725 million with a
duration of 1.98 years sold at 100 basis points over a short term
futures benchmark.
Other recent issuers include Harley-Davidson Inc. (HOG),
Discover Financial Services (DFS), Ford Motor Co. (F), Chrysler
Auto and SLM Corp. (SLM), better known as Sallie Mae.
Sallie Mae's $1.1 billion 3.92 year student-loan-backed deal
sold at 125 basis points over a benchmark.
On Monday, Bank of America Auto Trust's deal, BAAT 2009-1, was
increased to $3.939 billion from an original $2.523 billion. The
four-tranche deal was led by Banc of America Securities and is to
be sold Tuesday.
Honda's deal was also increased in size from an original $1.5
billion.
Chrysler's $1.26 billion deal has launched and price guidance is
available on Ford Motor Co.'s $1.02 billion deal and Harley
Davidson's $700 million deal.
Last week, Discover's $1.5 billion credit card loan-backed deal
sold at 130 basis points over the one-month London interbank
offered rate, or Libor, according to a person familiar with the
deal.
In June, 13 TALF-eligible deals totaling $16.4 billion and three
non-TALF deals for about $3 billion were sold.
When the program launched in March, it received a lukewarm
reception and only four deals for $8.3 billion were sold.
Later Tuesday, the Fed will say how much investors applied for
in loans.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227;
anusha.shrivastava@dowjones.com