MBARC Credit Canada completes offering of asset-backed notes

On June 24, 2015, 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 $424,200,000 of asset-backed notes collateralized by a pool of over 13,500 Canadian retail auto lease contracts and the related new and used vehicles.

This was the second offering by MBARC, which completed its debut Canadian ABS transaction in November 2014. MBFSC, the Canadian financial services provider for the Daimler group, will service the 2015-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 2015-A Asset-Backed Notes. RBC Dominion Securities Inc., CIBC World Markets Inc., Scotia Capital 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 Notes received AAA(sf) and Aaa(sf) ratings from DBRS and Moody’s, respectively.

MBARC and MBFSC were represented by Blake, Cassels & Graydon LLP with a team that included Mark Selick and Christine Creighton (structured finance); Markus Viirland and Alexander MacMillan (securities) and Sabrina Wong and Josh Jones (tax).  Sidley Austin LLP was US counsel to MBARC and MBFSC with a team that included Dale Lum and Siegfried Knopf (structured finance).

The agents were represented in Canada by Stikeman Elliott LLP with a team that included Mark McElheran, Jason Kroft and John Lee (corporate and securities) and in the United States by Mayer Brown LLP with a team that included Julie Gillespie, Amanda Baker and Jessie Dougher (banking and finance).