Honda Canada Finance

HART, a special purpose trust established in March, 1999 to securitize loans and leases originated by Honda Canada Finance Inc. (HCFI), completed its second securitization transaction on March 31, 2000. In the transaction, HART acquired a $500 million pool of Honda and Acura automobile and motorcycle loans from HCFI. The transaction was funded by HART’s first public issuance of $100 million of senior medium term class A-1 asset-backed notes and $100 million of senior medium term class A-2 asset-backed notes and the private issuance of approximately $280.7 million of commercial paper. The transaction, in which CIBC World Markets was the structurer and lead distribution agent, involved the issuance of medium term notes structured to receive semi-annual payments of interest and payment of principal in full on their respective expected maturity dates backed by monthly-pay loans. The structure represents a first in the Canadian asset-backed market.

Michael Carman (corporate), Mark McElheran (corporate) and Maurice Swan (corporate) of Stikeman Elliott acted on behalf of CIBC World Markets and HART with the assistance of Jason Kroft (corporate), Theresa Fergusson (corporate), David Glicksman (tax) and Kevin Kelly (tax). Peter Willis and Peter Milligan of McMillan Binch, with the assistance of Marlin Horst (corporate), Richard Shimoda (corporate) and Michael Templeton (tax) acted on behalf of HCFI.