Santander Consumer USA is concentrating a higher proportion of long-term leases in its first auto-lease securitization of Chrysler, Jeep and Dodge-branded vehicles for 2021.
According to a presale report from Fitch Ratings, Santander – the consumer lending arm of Santander Holdings USA (rated BBB+ by Fitch) – has a 53.9% share of leases with original terms greater than 36 months in the planned $1.25 billion asset-backed transaction.
That share exceeds to 50.2% for Santander’s $1.24 billion lease ABS transaction last October, and is the “highest concentration to date” on the ABS shelf, according to Fitch.
Santander Retail Auto Lease Trust 2021-A is the 8thretail auto-lease securitization by Santander since 2017, and will include seven classes of notes that will be backed by an exchange note collateralized by a $1.35 billion reference pool of closed-end leases that Santander originated through its Chrysler Capital division.
The deal could be potentially upsized to a $1.6 billion bond offering, according to the ratings agency.
Santander serves as the U.S. captive finance arm for dealers of the…