Silver Arrow Canada LP completes first offering of Series 2018-1 asset-backed notes

Mercedes-Benz Financial Services Canada Corporation (“MBFSC”), an indirect wholly-owned subsidiary of Daimler AG, established a platform to securitize from time to time its Canadian motor vehicle conditional sale contracts and installment sale contracts (“Receivables”) by forming Silver Arrow Canada LP, a limited partnership (the “Issuer”), and its sole general partner, Silver Arrow Canada GP Inc.

On October 24, 2018, the Issuer completed an offering of $507,260,000 of asset-backed notes collateralized by a pool of over 18,000 Receivables.

MBFSC, the Canadian financial services provider for the Daimler group, sold the Receivables to the Issuer and will service the 2018-1 portfolio.

The Issuer 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 2018-1 Asset-Backed Notes (the “Notes”).

RBC Dominion Securities Inc., Scotia Capital Inc., CIBC World Markets Inc. and TD Securities Inc. and their respective US registered broker dealer affiliates acted as agents in respect of the private placements of the Notes. All three classes of the Notes received AAA (sf) ratings from both DBRS and S&P.

The Issuer and MBFSC were represented by Blake, Cassels & Graydon LLP with a team that included Michael Burke, Adam Jackson and Danielle Butler (Structured Finance), Markus Viirland and Alex MacMillan (Securities), Yannick Beaudoin (Quebec), Sabrina Wong (Income Tax) and Zvi Halpern-Shavim (Sales Tax).

Sidley Austin LLP was US counsel to the Issuer and MBFSC with a team that included Dale Lum and Siegfried Knopf (Structured Finance). MBFSC was represented by Hina Latif, General Counsel.

The agents were represented in Canada by McCarthy Tétrault LLP with a team that included Dirk Rueter and Jo-Anna Brimmer (Structured Finance).

The agents were represented in the United States by Katten Muchin Rosenman LLP with a team that included John Keiserman, Christina Burgess and Emmanuel Mevs (Structured Finance).

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