MBARC Credit Canada completes offering of Series 2019-A Asset-Backed Notes

On February 27, 2019, MBARC Credit Canada Inc. (“MBARC”), an indirect wholly-owned subsidiary of Daimler AG and a direct wholly-owned subsidiary of Mercedes-Benz Financial Services Canada Corporation (“MBFSC”), completed an offering of $522,930,000 of asset-backed notes collateralized by a pool of over 14,000 Canadian retail auto lease contracts and the related new and used vehicles. MBFSC, the Canadian financial services provider for the Daimler group, will service the 2019-A portfolio.

MBARC financed the securitization transaction by completing a private placement in Canada, together with a concurrent Rule 144A offering in the United States, of three classes of Series 2019-A Asset-Backed Notes. CIBC World Markets Inc, RBC Dominion Securities Inc., Scotia Capital Inc., and TD Securities Inc. and their respective U.S. registered broker dealer affiliates acted as agents in respect of the private placements of the Notes. All three classes of Notes received AAA(sf) and AAA(sf) ratings from DBRS and Fitch, respectively.

MBARC and MBFSC were represented by Blake, Cassels & Graydon LLP with a team that included Michael Burke, Adam Jackson, Danielle Butler, and Stacey Conway (Structured Finance), Markus Viirland, Alex MacMillan, and Jonathan York (Securities), and Sabrina Wong (Tax). Sidley Austin LLP was US counsel to MBARC and MBFSC with a team that included Dale Lum and Siegfried Knopf (Structured Finance). MBFSC was represented in-house by Hina Latif, Vice President, General Counsel and Secretary.

The agents were represented in Canada by Stikeman Elliott LLP with a team that included Mark McElheran and Aggrey Semi (Structured Finance) and in the United States by Mayer Brown LLP with a team that included Julie Gillespie and Jessie Dougher (Banking and Finance).

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