The Bridgecrest securitization program is returning to the capital markets to sell $538.9 million in auto asset-backed securities, ultimately collateralized by a pool of retail installment sale contracts on new and used automobiles.
The main asset in Bridgecrest Lending Auto Securitization Trust, or BLAST 2024-4, is a certificate that ultimately represents the beneficial ownership in the pool of contracts, according to a Securities and Exchange Commission (SEC) filing about the deal. BLAST 2024-4 will issue notes through three class A notes and four class B, C, D and E tranches.
The class A1, A2 and A3 notes have legal final payment dates of Nov. 17, 2025, Sept. 15, 2027 and Sept. 15, 2028, respectively, according to the SEC and S&P Global Ratings. The classes B, C and D notes all mature on Aug. 15, 2030, while the class E notes mature one year later.
According to the SEC Citigroup
, Deutsche Bank Securities and Wells Fargo Securities are underwriters on the deal, and Asset Securitization Report’s deal database notes that they are also managers. The fixed-rate notes are expected to yield 4.90% on the A1 notes through 5.29% on the class D notes, according to the deal database. All nots are priced against the three-month I-curve.
The deal is scheduled to close at the end of the month.
BLAST 2024-4’s credit enhancement includes pre-pricing excess spread at around 13.31%, an increase from 12.77% seen in the BLAST 2024-3 issuance. Overcollateralization is also included but is unchanged at 3.25% of the initial pool balance. There is also a reserve account funded with an initial amount of at least 1.5% of the pool balance as of the cut-off date.
Another form of credit enhancement will be subordination for classes A through D, according to S&P.
S&P, Fitch Ratings and Morningstar DBRS assign A1+, F1+ and R1 ratings, respectively, to the A1 notes. The three rating agencies also assign AAA to the A2 and A3 notes; AA to the class B notes; A to the class C notes; and BBB to the class D notes. DBRS and S&P assigned BB to the class E notes.
