TYSONS, Va.– PenFed Credit Union is reporting it has closed on its second prime auto loan securitization in a $447.4 million transaction that involved fixed-rate, amortizing asset-backed notes backed by prime auto loans.
The securitization, PenFed Auto Receivables Owner Trust 2024-A (PNFED 2024-A), was a private placement offering, which in the United States is offered only to qualified institutional buyers under Rule 144A, PenFed said, adding the asset-backed notes were offered in four senior and three subordinate tranches of notes and rated by S&P and Fitch.
"PenFed is proud to announce our second auto loan securitization," PenFed Credit Union President/CEO James Schenck said in a statement. "This second securitization diversifies funding, increases liquidity and strengthens net worth."
PenFed’s CFO and EVP, Sarah Heintzman, said the credit union plans to continue “leveraging securitization as a tool to help us serve our members by diversifying liquidity and funding options."
About the Sale
The $33.5-billion PenFed, which noted it has the second-largest consumer loan portfolio among all credit unions across auto, personal, student, consumer loans and credit cards, said it also has one of the largest auto loan portfolios among federal credit unions, with originations across all 50 states and Puerto Rico.
PNFED 2024-A introduced auto loans issued in Puerto Rico as part of the collateral pool for this transaction, the credit union said.
J.P. Morgan Securities LLC acted as the structuring lead of the transaction and Mizuho Securities USA LLC, acted as joint lead with Roberts & Ryan, Inc as the co-manager on the transaction.
PenFed has approximately 2.9 million members.