Silver Arrow Canada LP completes first offering of Series 2018-1 Asset-Backed Notes

Date Closed

October 24, 2018

Lead Office

Toronto

Value

507.26 Million CAD

On October 24, 2018, Mercedes-Benz Financial Services Canada Corporation (“MBFSC”) completed the formation of Silver Arrow Canada LP, a limited partnership (the “Issuer”), and its sole general partner, Silver Arrow Canada GP Inc. to serve as a platform to securitize from time to time its Canadian motor vehicle conditional sale contracts and installment sale contracts (“Receivables”). On October 24, 2018, Silver Arrow Canada LP completed an offering of C$507.26 million 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.

Silver Arrow Canada LP 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 U.S. 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 DBRS and S&P.  

MBFSC is an indirect wholly-owned subsidiary of Daimler AG and provides a wide range of financing and leasing options to its customers.

McCarthy Tétrault LLP advised the agents with a team led by Dirk Rueter that included Jo-Anna Brimmer.

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