PHH announces Chesapeake Funding, LLC’s issuance of $1 billion of senior asset backed notes

June 15, 2010

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On June 1, 2010, PHH Corporation announced the completion of another important financing initiative designed to  improve the funding capabilities of PHH Arval: 

Chesapeake Funding, LLC, entered into the Series 2010-1 Indenture Supplement, pursuant to which Chesapeake may issue up to $1.0 billion in aggregate principal amount of its senior Series 2010-1 Asset Backed Notes, Class A. Chesapeake also issued approximately $32.9 million in aggregate principal amount of its subordinated Series 2010-1 Asset Backed Notes, Class B .

Upon the closing of this new series of asset backed notes, Chesapeake Funding made a draw of $500 million, which was used to repay an outstanding series of notes issued by Chesapeake in 2006.  The remaining $500 million of undrawn capacity from this most recent issuance of notes is available to provide funding for our domestic vehicle financing needs.

This transaction is the most recent example of our ongoing financing initiatives to further diversify and extend the maturities of our liability structure and is representative of the strength of our business and assets. In the last 18 months, PHH has secured over $3 billion in new funding to meet our clients’ vehicle leasing needs.

If you’re interested in more information about this transaction, you can access the 8-K filing at http://www.phh.com/ and link to PHH Corporation’s SEC filings under the Investor Relations tab.

Tags:  Funding