Exeter Finance Corp. announced this week that EFCAR — a special purpose Delaware limited liability company and wholly owned subsidiary of the Exeter — priced $500 million in aggregate principal amount Series 2014-2 automobile receivable backed notes.

The company indicated the notes will be issued in four separate tranches.

The class A notes were rated AAA/AA by DBRS and Standard & Poor’s, respectively, while the remaining three tranches were rated A, BBB and BB by both agencies. 

On a blended basis, Exeter mentioned the average annual coupon of the notes is approximately 2.64 percent.

Officials added the notes have final scheduled distribution dates ranging from Aug. 15, 2018 through Dec. 15, 2020.

 Upon closing of the transaction, Exeter said the net proceeds from the sale of the Series 2014-2 notes will be applied to reduce borrowings outstanding under the company’s existing three-year, $1.075 billion warehouse financing facility. 

The offering is expected to close on May 28.

Citigroup and Wells Fargo Securities acted as joint bookrunners on the transaction, with Deutsche Bank Securities and Goldman, Sachs & Co. participating as co-managers.