LONDON, July 23 (Reuters) - Italian automaker Fiat plans to launch an 824 million euro bond secured on its customers' car loan repayments on Tuesday, a source close to the deal said. When a company issues a secured bond it ring-fences a set of assets -- in this case car loan repayments made by Spanish and French customers -- by selling them to a specially set up company that pays for the assets by issuing bonds. That company for this bond is called European Auto Securitisation 2002.
The transaction, which should launch at around 1500 GMT on Tuesday, will be managed by JPMorgan, HSBC and Banca IMI and is structured as follows:
- Class A, 704.52 million euros, rated AAA, price talk at
around 20 basis points over Euribor.
- Class B, 45.32 million euros, rated A, price talk at 45 to
50 basis points over the mid-swaps curve.
- Class M, 74.16 million euros, unrated and retained.