BMW's $1 Billion Bond To Price Later Wed - Source
September 15 2010 - 8:44AM
Dow Jones News
Auto-maker BMW has increased the size of its asset-backed bond
to $1 billion from an original $750 million and has launched it,
according to a person familiar with the matter.
The largest tranche, valued at $363 million, has launched at 25
basis points over Eurodollar Synthetic Forward, a benchmark.
Guidance was in the area of 30 basis points over EDSF.
The $350 million tranche, launched at 15 basis points over the
same benchmark. Guidance was in the range of 20 to 25 basis points
over the same benchmark.
The bond, led by Citigroup Inc. (C) and J.P. Morgan Chase &
Co. (JPM), is scheduled to price on Wednesday.
In the meantime, AmeriCredit Auto Receivables Trust's bond has
also been increased in size to $850 million, up from an original
$700 million bond, according to a person familiar with the
matter.
Joint lead managers on the bond, dubbed AMCAR 2010-3 and
scheduled to price later this week, are Barclays Capital, UBS AG
(UBS) and Wells Fargo & Co. (WFC).
Price guidance is also out: the largest tranche valued at $281
million, has guidance in the range of 37 to 40 basis points over
Eurodollar Synthetic Forward, a benchmark.
All six tranches of the bond are "subject", indicating investors
have already said they will buy the bond. This is a sign of strong
demand, as is the fact the bond was increased in size.
DriveTime Auto is tapping the market with a $228 million bond
backed by subprime auto loans. Joint leads managers are Deutsche
Bank AG (DB), Royal Bank of Scotland Group PLC (RBS) and UBS. The
bond will price this week.
The asset-backed market has seen a spurt of issuance after a
three-week pause. Other issuers include Nissan Motor Co.(NSANY,
7201.TO) with a $1 billion bond, Discover Credit Card with a $600
million security and All Student Loan Group with a $458.32 million
student loan-backed bond.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227;
anusha.shrivastava@dowjones.com
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