The automotive finance industry has seen significant growth in recent years, with companies like Yamaha Motor Finance Corporation, U.S.A. (YMFUS), leading the way. Recently, YMFUS announced its completion of a $400 million asset-backed securitization transaction designed to strengthen its ability to finance dealer inventory across its powersports and marine dealer network. This move is expected to have a significant impact on the industry, providing additional funding capacity for dealers and increasing resilience in supporting inventory needs.
The securitization transaction, known as YMMT II 2026-A, is backed by receivables generated through dealer inventory loans secured by new Yamaha powersports and marine products. This marks several industry milestones, including YMFUS's first term asset-backed securitization and the first dealer floorplan asset-backed securities (ABS) transaction backed by powersports and marine collateral from a captive finance company.
The deal also represents the first dealer floorplan ABS transaction containing powersports and marine receivables since 2015. This highlights Yamaha's commitment to supporting its dealers across various product lines, including powersports and marine products. The company currently supports more than 2,000 Yamaha dealers nationwide, making this financing move a significant step forward in expanding its reach.
For Yamaha dealers, the financing move provides additional funding capacity to support inventory needs as the manufacturer continues to grow its retail and commercial finance operations. This increased flexibility is expected to have a positive impact on dealer satisfaction and overall business performance.
The strong demand for the securitization transaction highlights confidence in Yamaha's dealer financing platform and broader powersports and marine business. The company reported more than $2 billion in orders from over two dozen institutional investors, demonstrating significant interest in the deal.
The offering consisted of three classes of notes rated by Moody’s Investors Service and Fitch Ratings. The Class A-1 notes received Aaa/AAA ratings, while the Class B notes were rated Aa3/AA and the Class C notes received A2/A ratings.
Mizuho Securities USA LLC served as structuring agent and joint bookrunner for the transaction. J.P. Morgan Securities LLC, MUFG Securities Americas Inc., and SMBC Nikko Securities America, Inc. also acted as joint bookrunners for the transaction.
The completion of the securitization gives Yamaha another source of capital beyond traditional bank lending facilities, providing additional flexibility to fund dealer floorplan financing and support inventory availability throughout its nationwide dealer network.
Overall, this deal demonstrates Yamaha's commitment to supporting its dealers and expanding its capabilities in the automotive finance industry. The company's ability to attract significant investor interest highlights the confidence in its business model and provides a positive outlook for the future.
The deal highlights confidence in Yamaha's dealer financing platform and broader powersports and marine business.
