Flagship subprime auto ABS bond bests prior levels
By Joy Wiltermuth
NEW YORK, March 5 (IFR) - A handful of structured finance deals priced on Thursday, including a credit card deal from Barclays (LSE: BARC.L - news) , two CMBS deals and a subprime auto transaction from Flagship Credit.
The biggest trade of the day was a US$500m card deal from Barclay's Dryrock shelf called DROCK 2015-1, which printed its sole 4.93-year Triple A tranche at Interpolated Swaps plus 50bp.
That was 14bp wide of the last issue from the Barclays shelf in November, but from a shorter 2.97-year bond, which typically would price tighter, according to IFR data.
The Flagship trade, a US$280.725m issue called FCAT 2015-1, was the stand out.
Overall, its pricing levels narrowed versus the issuer's prior print in October.
While its top AA rated 1.33-year class cleared flat to the October issue at EDSF plus 100bp, both its BBB/BBB class and bottom BB-/BB tranches rallied by 25bp.
STRUCTURED FINANCE WRAP FOR 3/5/15:
ABS PRICED:
DROCK 2015-1: US$500m credit card ABS backed by prime Visa (Xetra: A0NC7B - news) , Mastercard, and American Express (Swiss: AXP.SW - news) cards. Barclays.
FCAT 2015-1: US$280.725m subprime auto ABS from Flagship Credit. Wells Fargo (Hanover: NWT.HA - news) (str) and Barclays.
ABS PENDING:
SMART 2015-1US: US$350m Australian prime auto ABS from Macquarie with tranches denominated in USD. JPM (str), Citi, and RBS (LSE: RBS.L - news) . Expected to be formally announced next week.
DRIVE 2015-A: US$712m subprime auto ABS from Santander Consumer USA. First (Other OTC: FSTC - news) post-crisis issuance of the DRIVE shelf since 2006. Citi (str) and Deutsche Bank (Xetra: 514000 - news) .
ALLY 2015-SN1: US$1bn auto lease ABS from Ally Financial (NYSE: ALLY - news) currently in pre-marketing. Citi (str), Deutsche Bank, Societe Generale.
CMBS PRICED:
FREMF 2015-KKA: US$734.486m multifamily CMBS from Freddie Mac. Wells Fargo (str) and Credit Suisse (NYSE: CS - news) .
MSC 2015-XLF1: US$348.4m CMBS conduit. 4 loans on 12 properties. 40% cut-off LTV, 3.25x DSCR, 10.8% debt yield. Morgan Stanley (Xetra: 885836 - news) .
CMBS PENDING:
MSC 2015-420: US$245m single asset CMBS on 420 Lexington Avenue. Morgan Stanley.
RMBS PRICED:
OHART 2015-NPL1: US$267m residential nonperforming securitization from Oak Hill Advisors. Wells Fargo.
CLO PRICED:
Sound Point VIII: US$625m CLO managed by Sound Point Capital Management. Morgan Stanley. (Reporting by Joy Wiltermuth; additional reporting by Andrew Park; editing by Shankar Ramakrishnan)