Ally's $1.06 Billion Bond Has Six Tranches - Source
February 02 2011 - 10:48AM
Dow Jones News
Ally Financial Inc., the first issuer to sell a large
asset-backed bond this year, is back in the securitization market
with a $1.06 billion bond, according to a person familiar with the
matter.
The bond, which has six tranches, is expected to price later
this week. Its largest portion is valued at $320 million.
Joint leads on the deal are Citigroup, Barclays Capital and
Royal Bank of Scotland.
Last month, Ally sold a $1.25 billion, which was increased from
an original $500 million, and was backed by dealer inventory. The
$750 million AAA-rated tranche sold at 87 basis points over
interpolated swaps.
There is steady issuance this week as it is the last full week
before industry participants head to Orlando for the American
Securitization Forum's conference next week.
On Tuesday, Santander Drive Auto Receivables Trust tapped the
asset-backed market with a $565.33 million auto-loan-backed bond.
Citigroup is the lead on the deal, which has three tranches and is
being sold via the private Rule 144a market.
In the meantime, General Electric Capital Corp.'s $717.28
million bond, offered via GE Equipment Small Ticket LLC, has
priced, according to a person familiar with the matter.
The bond is backed by equipment loans and leases and is being
sold via the private Rule 144a market. The deal is scheduled to
price this week.
The largest tranche of the six-part deal is valued at $245
million and has priced at 36 basis points over Eurodollar synthetic
forward, or EDSF, a benchmark, to yield 0.889%. Price guidance on
this 1.25 year tranche was in the range of 35 to 40 basis
points.
Joint lead managers are Barclays Capital and Bank of America
Merrill Lynch.
DriveTime Auto is in the market with a $214 million bond,
offered via the private Rule 144a market. Joint lead managers are
UBS, Deutsche Bank and Royal Bank of Scotland.
The largest tranche of the four-part deal is $118.99 million,
according to a term sheet. Price talk on this portion is in the
range of 60 basis points over EDSF. Price talk on the single-A
rated $42.556 million tranche is in the area of 200 to 225 basis
points over EDSF.
In recent days, other asset-backed issuers include Toyota Motor
Corp. (TM, 7203.TO) with a $1 billion prime retail auto loan backed
bond, Ford Credit Auto Owner Trust with a $1.137 billion auto
loan-backed bond and Hyundai Auto Receivables Trust with a $920.78
million auto sector bond.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227;
anusha.shrivastava@dowjones.com