TALF-Eligible World Omni, CarMax Deals Sold
07 Abril 2009 - 12:07PM
Noticias Dow Jones
Three deals eligible for funding under the Federal Reserve's
Term Asset-Backed Securities Loan Facility, or TALF, have sold just
ahead of the loan application deadline for the program.
The top-rated portions of these deals total $2.57 billion,
significantly less than the $8.2 billion of TALF-eligible deals
that were on offer before the first loan application deadline last
month.
TALF is geared toward lowering consumer-lending costs, cleaning
bank balance sheets and reviving the asset-backed securities
market.
The central bank is accepting loan requests between 1 p.m. and 3
p.m. and will release data on how much was requested later
Tuesday.
Last month saw just $4.7 billion of funding requests on around
$8 billion of securitizations.
World Omni Financial Corp.'s $750 million deal sold, according
to a person familiar with the issue. Its largest tranche worth $248
million sold at 185 basis points over a short-term futures
benchmark. Joint leads were Barclays and Banc of America
Securities.
World Financial Network National Bank also sold its $709 million
credit-card loan-backed deal Tuesday. The largest triple-A rated
tranche worth $560 million sold at 280 basis points over swaps.
CarMax Inc.'s (KMX) prime auto loan backed deal also sold with
the largest triple-A rated portion worth $260 million sold at 265
basis points over a short-term futures benchmark. The deal is $840
million is size but only four tranches are TALF-eligible.
Retailer Cabela's Inc. (CAB) is offering a credit-card-backed
$486 million deal, due to be sold later Tuesday.
Under the program, investors can apply for financing by handing
over eligible collateral such as new bonds backed by auto loans,
student loans and credit-card debt. The list of collateral will
eventually expand to commercial and risky, older residential
mortgage-backed securities.
Investors have been wary of the program because of lengthy
documentation requirements, provisions curbing the employment of
foreign nationals and possible interference from legislators.
The World Financial deal had Barclays Capital and JP Morgan as
joint leads.
The Cabela's deal has JP Morgan and Wachovia as joint leads. Its
triple-A rated tranche worth $425 million has guidance of 200 basis
points over one month Libor.
-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371;
anusha.shrivastava@dowjones.com