DEARBORN, Mich. — Ford Credit Canada Limited gained immediately available proceeds of $28 million (CAD) this week after completing a sale of subordinate notes, which were sponsored by Ford Credit Canada Limited, Ford Auto Securitization Trust (FAST).
They are backed by a pool of retained conditional sale contracts from Ford Credit Canada, which bought these notes from FAST on Jan. 22.
Ford Credit Canada is now selling the notes to a third-party investor.
"FAST is consolidated with Ford Credit Canada Limited for accounting purposes," officials noted. "As a result of such consolidation, both the pool of retail contracts and the indebtedness incurred by FAST with respect to the series of asset-backed notes will be reflected on the consolidated financial statements of Ford Credit Canada Limited."
Executives said the proceeds will be used for "general corporate purposes."
Ford Credit Canada Completes Retail Securitization Transaction
In other news from the company, Ford Credit Canada announced earlier this month that it completed a securitization of a pool of retail conditional sale contracts that generated immediately available proceeds of $510 million (CAD) for the company.
Under the transaction, a master trust sponsored by FAST purchased a pool of retail conditional sale contracts from Ford Credit Canada.
"FAST financed the purchase by issuing a series of asset-backed notes to third party investors," officials noted. "This transaction is not associated with the government-sponsored Canadian Secured Credit Facility."
Ford Credit Canada said it plans to use the proceeds to pay down debt that it owes to Ford Credit International.