BMW Group Financial Services Opens Up Euro ABS Market 2010
Successful placement via Société Générale Corporate & Investment Banking and WestLB AG
Munich, January 26, 2010. The securitisation transaction Bavarian Sky S.A., Compartment 2 (BSKY 2) was successfully placed with a broad range of investors on January 25th. This was the first benchmark Auto ABS (Asset-Backed Securities) transaction in 2010 and only the second transaction in this asset class since September 2008 to be marketed to investors via a roadshow and subsequent bookbuilding process. The syndicate of banks, led by Société Générale Corporate & Investment Banking and WestLB, was able to price the AAA-rated tranche at the lower end of the price guidance, which was 85-90bps, thanks to the significant investor demand and high oversubscription levels. The Class B notes were retained by BMW Group.
The transaction comprised the following two tranches:
• EUR 742 million Class A notes, rating: AAA/AAA (Fitch/S&P)
• EUR 58 million Class B notes, rating: A/A (Fitch/S&P)
BSKY 2 is the second public securitisation transaction of auto lease receivables from BMW Leasing GmbH, Munich, a wholly owned subsidiary of BMW AG. The company securitised a diversified portfolio of around 76,000 leasing contracts with commercial and private lessees resident in Germany, worth EUR 800 million. The Class A Notes were priced at 1-month Euribor plus 85 basis points, and the Class B Notes were priced at 105 bp (retained). The Class A order book was oversubscribed three times. The strong demand from approximately 50 investors in 13 countries confirms the high standing enjoyed by BMW Group Financial Services as a prime originator and servicer in the capital market. It also marks an important step in rebuilding investors' confidence in prime ABS transactions.
The transaction was arranged by WestLB and marketed by Société Générale Corporate & Investment Banking and WestLB as Joint Lead Managers and Commerzbank and SEB as managers. During the course of a five-day roadshow, over 50 investors took part in meetings and group presentations held in London, Paris, Munich and Amsterdam.