TYSONS, Va.– PenFed Credit Union is reporting the closing of its third prime auto loan securitization offering, PenFed Auto Receivables Owner Trust 2025-A (PNFED 2025-A).
The transaction issued $398,490,000 of fixed-rate, amortizing asset-backed notes backed by prime auto loans, according to the $30-billion PenFed.
“This third securitization diversifies funding, increases liquidity and strengthens net worth,” President/CEO James Schenck said in a statement.
PenFed said the securitization is a private placement offering, which in the United States is offered only to qualified institutional buyers under Rule 144A. The asset-backed notes were offered in four senior and three subordinate tranches of notes and rated by S&P and Fitch.
‘Very Well Received’
“PenFed is pleased that this auto loan securitization offering was very well received by the market,” CFO and EVP Sarah Heintzman said in a statement. “We plan to continue establishing PenFed as a programmatic issuer and leveraging securitization as a tool to help us serve our members by diversifying liquidity and funding options.”
PenFed added that PNFED 2025-A is the second transaction to include auto loans issued in Puerto Rico as part of the collateral pool for this transaction.
J.P. Morgan Securities LLC acted as the structuring lead of the transaction, and Wells Fargo Securities LLC acted as joint lead with Goldman Sachs & Co. LLC as the co-manager.
