DCR Rates Superior Wholesale Inventory Financing Trust V
7 May 1999
DCR Rates Superior Wholesale Inventory Financing Trust V
NEW YORK, May 6 -- Duff & Phelps Credit Rating Co. (DCR) has
assigned a preliminary 'AAA' (Triple-A) rating to the $750 million
floating-rate asset-backed term notes, Series 1999-A issued by Superior
Wholesale Inventory Financing Trust V (SWIFT V). The notes have a coupon of
LIBOR plus 0.125 percent and a stated final maturity of May 2006. The seller
for the transaction is Wholesale Auto Receivables Corporation (WARC) and the
servicer is General Motors Acceptance Corporation (GMAC). The Bank of New
York is the trustee and the transaction is underwritten by Salomon Smith
Barney and Bear, Stearns & Co., Inc.
DCR's ratings for the 1999-A term notes are based on GMAC's extensive
origination and servicing experience, GMAC's excellent historical performance
of dealer floorplan financing portfolio, the sound legal structure of the
transaction, and 9 percent credit enhancement available for the term notes.
The underlying receivables consist of a pool of dealer floorplan financing
agreements between GMAC and a group of retail automotive dealers franchised by
General Motors Corporation (GM). These agreements are lines of credit that
dealers use to purchase new and used motor vehicles manufactured or
distributed by GM and other motor vehicle manufacturers and distributors.
The trust will issue $750 million of Series 1999-A Term Notes, with
interest payable monthly based on one-month LIBOR. The trust will also issue
Series 1999-RN1 Revolving Notes with a maximum revolver balance of
$1.25 billion and Series 1999-A Certificates, in an amount equal to
8.5 percent of the pool. Only the Series 1999-A Term Notes are rated.
Interest will be shared pro rata among the Term Notes and Revolving Notes.
The Certificates are subordinated to the Term Notes and Revolving Notes. The
revolving period ends in June 1999, but automatically extends monthly for up
to six years unless the holder of the revolving notes elects to terminate the
extension. When the revolving period ends, the wind-down period begins
immediately on the next business day.
During the wind-down period, principal collections on the receivables will
be accumulated in a cash accumulation account until May 2004, the targeted
final payment date of the term notes. Certain events, including if the
three-month average payment rate is less than 25 percent or if the note
reserve fund falls below 25% of the required amount, will cause a cash
accumulation event in which principal collections will be deposited into an
account that will be invested in eligible short-term investments. Certain
other performance-related or insolvency events will cause a rapid amortization
event in which principal will be paid monthly until the term notes are paid in
full.
Duff & Phelps Credit Rating Co. (DCR) is a leading global rating agency
with 32 local market offices providing ratings and research on debt issues and
insurance claims paying ability in more than 50 countries. For additional
research on Superior Wholesale Inventory Financing Trust V, visit DCR's web
site at http://www.dcrco.com (Quick Search: Superior). DCR's research is also
available on Bloomberg at DCR and First Call's BondCall Direct/Research
Direct at http://www.firstcall.com , as well as through other third-party
providers. For a copy of the New Financing Report Summary on this
transaction, please call the DCR Hotline at 312-368-3198 or e-mail
hotline@dcrco.com.