Plenti prices inaugural ABS transaction

The Plenti Auto ABS 2021-1 transaction would substantially reduce Plenti’s funding costs and required equity contribution across the pool of receivables, the lender said.

The funding will go towards financing existing automotive loan originations, freeing up $300 million of capacity in the automotive warehouse funding facility, it added.

Plenti received support from 14 onshore and offshore investors for the transaction, which is expected to settle on 12 August, subject to satisfaction of customary conditions precedent.

National Australia Bank (NAB) acted as arranger, while NAB and Deutsche Bank are joint lead managers of the transaction.

The majority of the notes (87.8 per cent) are expected to be rated AAA by Moody’s.

Plenti chief financial officer Miles Drury said the level of credit support required by Moody’s at each rating level and the pricing across the note has reflected strong credit performance and profile of the underlying prime automotive loans.

He also said the transaction would help Plenti achieve its three core strategic objectives by reducing funding costs “while building out the depth and diversity of our funding”.

“The attractive terms of the transaction are reflective of our proprietary technology and streamlined processes, helping us attract high-quality borrowers as we continue to build our prime loan portfolio,” Mr Drury said.

Plenti recently increased its secured automotive loan warehouse facility from $350 million to $450 million to meet borrower demand for automotive loans.

[Related: Plenti loan book up 61% YOY]