UPDATE: USAA's $1 Billion Non-TALF Deal Prices In Line With Launch

Date : 11/05/2009 @ 5:15PM
Source : Dow Jones News
Stock : Fannie Mae (FNM)
Quote : 0.99  -0.01 (-1.00%) @ 8:00PM
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UPDATE: USAA's $1 Billion Non-TALF Deal Prices In Line With Launch

(Updates with sale)

 
   By Anusha Shrivastava 
   Of DOW JONES NEWSWIRES 
 

NEW YORK-(Dow Jones)- USAA Auto Owner Trust's $1 billion deal priced late Thursday in line with the launch, according to a person familiar with the matter.

This was the second bond USAA is marketing this year. Led by Credit Suisse and Barclays Capital, the deal isn't eligible for cheap financing under the Federal Reserve's program to boost the securitization market.

The largest tranche of the deal, worth $385 million, priced at 28 basis points over a benchmark.

Tuesday was this month's loan application deadline for the central bank's Term Asset-Backed Securities Loan Facility, or TALF. Consumer loan-backed deals worth about $6 billion sold ahead of this deadline.

TALF issuance has crossed the $90 billion mark, a sign the program has worked.

Other non-TALF deals in the market this month include a $591 million bond from CarMax and a $545.9 million deal from Entergy Texas Restoration Funding LLC.

World Omni's $1.04 billion non-TALF deal sold earlier this week, according to a term sheet.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@dowjones.com

(Romy Varghese contributed to this report.)

 
 

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