than US$7.4bn of such securitisations were
sold.
The 1950s-style drive-in will use mostly
franchise royalty payments from more than
3,500 locations as collateral on the deal,
according to a S&P pre-sale report.
Sonic’s strong brand - it serves around 3
million customers daily - should be appeal to
a buyside that has ramped up interest in
WBS trades over the past few months.
S&P listed Sonic’s operating history of
OVERûûYEARS ûITSûLARGEûANDûDIVERSIlEDû
franchise base and stable historical sales as
other credit positives.
Whispers on the single 6.8-year Triple B
rated tranche - expected to price this week
after sole lead GuggenheimûlNISHESûPRE
marketing - are circulating at 180bp-200bp
over interpolated swaps, one investor said.
That is wide of a similarly rated but
SIGNIlCANTLYûLARGERûDEALûFROMû7ENDYSûTHATû
priced in December at 135bp over
interpolated swaps.
Proceeds from the new trade will
completely pay down US$98m that the
company has drawn from an outstanding
variable funding note, Sonic said.
While the deal will increase leverage from
about 4.9x to 5.6x, that will still be lower
than that of many competitors, according to
S&P.
Five Guys, which sold a WBS last year, has
6.7x leverage, while Wendy’s has about
7.5x, the agency said.
“The low leverage really differentiates
Sonic from other WBS that we have seen,”
S&P’s Christine Dalton told IFR.
The concept of the business is also quite
unique, the rating agency’s Alexander
Dennis said.
“Most other deals that have come to
market have an international presence, but
this is a pure domestic business.”
Sonic, which claims to sell enough tots in
a year to cover the globe twice over,
generated system-wide sales of around
US$4.4bn in the last 12 months.
Like many peers, it expects technology to
help drive future revenues, such as a coming
app that will let customers order their food
ahead of time.
“Competition in the restaurant industry
remains intense,” S&P said. “Companies’
digital interactions with customers and a
shift toward using fewer food additives
remain focus points.”
US ABS DEAL PRICINGSBANK OF MONTREAL
BANK OF MONTREAL priced an upsized
US$634.920m (from US$423.28m) credit
card ABS called MCCT 2018-1. Bank of Montreal
was structurer and joint bookrunner along
with Barclays and JP Morgan.
Collateral: Predominantly prime-quality,
Canadian credit card receivables originated
by Bank of Montreal.
Largest tranche: Class A US$600m, with
4.99-year WAL, rated Triple A; priced at one-
month Libor plus 49bp versus guidance at
one-month Libor plus 50bp-52bp.BMW AG
BMW AG priced a US$1.25bn prime auto loan
transaction called BMW VEHICLE OWNER TRUST
BMWOT 2018-A. JP Morgan was structurer and
joint bookrunner along with Credit Suisse and
Mizuho.
Collateral: Prime auto loans.
Largest tranche: Class A-2a US$410m, with
0.98-year WAL, rated Triple A; priced at EDSF
plus 7bp versus guidance at EDSF plus 7bp-9bp.CARMAX AUTO
CARMAX BUSINESS SERVICES LLC priced and
upsized a US$1.35bn (from US$1.15bn)
prime auto loan-backed transaction called
CARMAX AUTO OWNER TRUST (CARMX) 2018-1. RBC
was structurer and joint lead manager with
Barclays and MUFG.
Collateral: Motor-vehicle retail instalment
sale contracts.
Largest tranche: Class A-3 US$394m, with
2.66-year WAL, rated Triple A; priced at
interpolated swaps plus 19bp versus guidance
at interpolated swaps plus 21bp-23bp.
Direct comp: CARMX 2017-4 (10/18/17)
Class A-3 US$378m, with 2.61-year WAL,
rated Triple A; priced at interpolated swaps
plus 25bp.HERTZ VEHICLE
HERTZ VEHICLE FINANCING upsized and priced a
US$1bn (up from US$600m) rental car ABS
transaction, HERTZ 2018-1. Bank of America
Merrill Lynch was structurer and joint lead
alongside BMO, BNP Paribas and Mizuho
Collateral: Revolving pool of vehicles
leased to Hertz and Dollar Thrifty.
Largest tranche: Class A US$764.02m,
with 5.09-year WAL, rated Triple A; priced at
interpolated swaps plus 88bp versus
guidance at interpolated swaps plus 95bp-
100bp.
Direct comp: HERTZ 2017-2 (9/15/17) Class
A US$267.407m, with 5.10-year WAL, rated
Triple A; priced at interpolated swaps plus
145bp.MARLETTE FUNDING LLC
MARLETTE priced an upsized US$464.362m (up
from US$393.611m) personal loan ABS
transaction called MFT 2018-1. Goldman Sachs
was structurer and joint bookrunner with
Citigroup and Deutsche Bank.
Collateral: Consumer loans.
Largest tranche: Class A US$308.914m
with a 0.97-year WAL; rated AA; priced at
%$3&ûPLUSûBP ûmATûTOûGUIDANCEDirect comp: MFT 2017-3 (10/17/17) Class
A US$196.005m, with 0.98-year WAL, rated
AA; priced at EDSF plus 75bp.MERCEDES-BENZ FINANCIAL
MERCEDES-BENZ FINANCIAL priced a US$1.286bn
(no grow) prime auto lease ABS called MBALT
2018-A. MUFG was structurer and joint lead
with BAML and Mizuho.
Collateral: Prime auto loans.
Largest tranche: Class A-2 US$460m, with
a 0.97-year WAL, rated Triple A; priced at
EDSF plus 18bp versus guidance at EDSF
plus 18bp-20bp.
Direct comp: MBALT 2017-A (4/19/17)
Class A-2A US$675m, with 1.04-year WAL,
rated Triple A; priced at EDSF plus 20bp.SANTANDER CONSUMER
SANTANDER CONSUMER priced a US$1.13bn (no-
grow) sub prime auto loan transaction,
SANTANDER DRIVE AUTO RECEIVABLES TRUST (SDART)
2018-1. RBC was structurer and joint lead with
Bank of Montreal and Deutsche Bank.
Collateral: Subprime auto loans.
Largest tranche: Class A-2 US$301.60m
with 0.79-year WAL, rated Triple A; priced at
EDSF plus 14bp versus guidance at EDSF
plus 18bp-20bp.
Direct comp: SDART 2017-3 (9/14/17) Class
A-2 US$233m, with 0.75-year WAL, rated
Triple A; priced at EDSF plus 24bp.SOCIAL FINANCE
SOFI launched an upsized US$960.2m private
student loan ABS called SOFI 2018-A. Goldman
Sachs was structurer and joint bookrunner
along with BAML, Deutsche Bank and JP
Morgan.
Collateral: Student loans.
LARGEST TRANCHE: Class A-2A US$484.4m
with a 1.49-year WAL, rated Triple A;
launched at EDSF plus 25bp.
Direct comp: SOFI 2017-F (12/05/17) Class
A1 US$381.2m with 1.33-year WAL, rated
Triple A; priced at EDSF plus 30bp.WESTLAKE FINANCIAL SERVICES
WESTLAKE FINANCIAL SERVICES upsized and priced
a US$1bn (up from US$750m) sub prime
auto ABS transaction, WESTLAKE AUTOMOBILE
RECEIVABLES TRUST 2018-1. JP Morgan was
structurer and joint bookrunner with Bank of
Montreal and Wells Fargo.
Collateral: Pool of subprime automobile
contracts and secured by new and used
automobiles, sport utility vehicles, light
duty trucks and vans.
Largest tranches: Class A-2A US$317.76m,
with 0.88-year WAL, rated Triple A; priced at
EDSF plus 25bp versus guidance at EDSF
plus 27bp-30bp.
Direct comp: WLAKE 2017-2 (8/01/17)
Class A2A US$249.22m, with 1.00-year WAL,
rated Triple A; priced at EDSF plus 35bp.