Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Wells Fargo Dealer Floorplan Master Note Trust | v384470_8k.htm |
| EX-4.1 - EXHIBIT 4.1 - Wells Fargo Dealer Floorplan Master Note Trust | v384470_ex4-1.htm |
Exhibit 99.1
CDF Funding, Inc. designated new accounts having a principal balance of approximately $72 million to the trust portfolio and transferred the receivables in those accounts to the Trust on June 25, 2014 (the “account addition”). The following tables summarize the trust portfolio by various criteria as of June 30, 2014, prepared on a pro forma basis as if the addition had occurred on June 30, 2014. Please note that numbers and percentages presented in the tables below may not sum to the totals presented due to rounding. Because the future composition and performance of the trust portfolio will change over time, these tables are not indicative of the composition or performance of the trust portfolio at any subsequent time.
For purposes of the following tables:
| • | Receivables Balance is the aggregate balance of the principal receivables included in such category as of the date or in the period indicated; and |
| • | the account totals exclude accounts with zero balances. |
The balance of principal receivables in the trust portfolio as of June 30, 2014 reflected in the tables set forth below under the headings “Composition of Receivables in the Trust Portfolio by Account Balance”, “Composition of Receivables in the Trust Portfolio by Product Line” and “Composition of Receivables in the Trust Portfolio by U.S. Geographic Location” and the principal balances of the applicable receivables used in the calculation of the data reflected in the tables and text set forth under the headings “Dealer Risk Rating Distribution in the Trust Portfolio”, “Certain Dealers and Manufacturers”, “Delinquency Experience for the Trust Portfolio”, “Loss Experience for the Designated Trust Portfolio”, “Age Distribution of Receivables in the Trust Portfolio”, “Certain Payment Plan Information” and “Historical Payment Rates for the Trust Portfolio” are based on the data collected by GE Capital and its subsidiaries’ information management systems. Certain manual inputs and adjustments are made to this data for monthly investor reporting purposes, and as a result the principal balances of the receivables reflected in, or used to calculate the data reflected in, such tables and text, for the relevant period, may be greater than the balance of principal receivables reflected in investor reports of a corresponding date or for a corresponding period. These manual inputs and adjustments primarily relate to manufacturer discount amounts and manual charge-offs. The difference between the balance of principal receivables derived from GE Capital and its subsidiaries’ information management systems and the principal balance of the receivables after giving effect to the manual inputs and adjustments is less than 1% for the period covered by the tables below.
Composition of Receivables in the Trust Portfolio by Account Balance
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| Account Balance Range | Receivables Balance | Percentage of Receivables Balance | Number of Accounts | Percentage of Number of Accounts | ||||||||||||
| $0.01 to $999,999.99 | $ | 3,311.1 | 41.6 | % | 24,620 | 94.6 | % | |||||||||
| $1,000,000.00 to $9,999,999.99 | $ | 3,096.8 | 38.9 | % | 1,324 | 5.1 | % | |||||||||
| $10,000,000.00 or more | $ | 1,545.3 | 19.4 | % | 68 | 0.3 | % | |||||||||
| Total | $ | 7,953.2 | 100.0 | % | 26,012 | 100.0 | % | |||||||||
Composition of Receivables in the Trust Portfolio by Product Line
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| Product Line | Receivables Balance | Percentage of Receivables Balance | Number of Accounts | Percentage of Number of Accounts | ||||||||||||
| Recreational Vehicles | $ | 1,199.0 | 15.1 | % | 888 | 3.4 | % | |||||||||
| Marine | $ | 1,125.7 | 14.2 | % | 2,518 | 9.7 | % | |||||||||
| Technology | $ | 972.6 | 12.2 | % | 1,095 | 4.2 | % | |||||||||
| Industrial and Agriculture | $ | 834.7 | 10.5 | % | 1,687 | 6.5 | % | |||||||||
| Lawn and Garden | $ | 834.3 | 10.5 | % | 9,781 | 37.6 | % | |||||||||
| Power Sports | $ | 787.6 | 9.9 | % | 1,611 | 6.2 | % | |||||||||
| Motorcycles | $ | 632.1 | 7.9 | % | 2,083 | 8.0 | % | |||||||||
| Consumer Electronics and Appliances | $ | 630.4 | 7.9 | % | 3,443 | 13.2 | % | |||||||||
| Transportation | $ | 547.6 | 6.9 | % | 132 | 0.5 | % | |||||||||
| AR / ABL | $ | 105.9 | 1.3 | % | 6 | 0.0 | %(2) | |||||||||
| Music | $ | 65.1 | 0.8 | % | 609 | 2.3 | % | |||||||||
| Manufactured Housing | $ | 11.4 | 0.1 | % | 34 | 0.1 | % | |||||||||
| Other(1) | $ | 206.8 | 2.6 | % | 2,125 | 8.2 | % | |||||||||
| Total | $ | 7,953.2 | 100.0 | % | 26,012 | 100.0 | % | |||||||||
| (1) | The “Other” category in the preceding table includes, among other product lines: sewing, heating, ventilating, and air conditioning equipment. |
| (2) | Greater than 0%, but less than 0.5%. |
Composition of Receivables in the Trust Portfolio by U.S. Geographic Location
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| State | Receivables Balance | Percentage of Receivables Balance | Number of Accounts | Percentage of Number of Accounts | ||||||||||||
| California | $ | 734.3 | 9.2 | % | 1,241 | 4.8 | % | |||||||||
| Texas | $ | 507.0 | 6.4 | % | 1,604 | 6.2 | % | |||||||||
| New York | $ | 492.7 | 6.2 | % | 1,408 | 5.4 | % | |||||||||
| Florida | $ | 486.5 | 6.1 | % | 1,188 | 4.6 | % | |||||||||
| Ohio | $ | 351.1 | 4.4 | % | 1,023 | 3.9 | % | |||||||||
| Michigan | $ | 311.3 | 3.9 | % | 1,062 | 4.1 | % | |||||||||
| Minnesota | $ | 263.6 | 3.3 | % | 859 | 3.3 | % | |||||||||
| Virginia | $ | 249.7 | 3.1 | % | 641 | 2.5 | % | |||||||||
| Pennsylvania | $ | 230.4 | 2.9 | % | 1,348 | 5.2 | % | |||||||||
| Washington | $ | 228.9 | 2.9 | % | 455 | 1.7 | % | |||||||||
| Other U.S. Locations | $ | 4,097.8 | 51.6 | % | 15,183 | 58.3 | % | |||||||||
| Total | $ | 7,953.2 | 100.0 | % | 26,012 | 100.0 | % | |||||||||
Dealer Risk Ratings
The originators categorize the receivables in the trust portfolio into three risk rating groups, as indicated in the table below, by percentage of receivables owed by the applicable dealers. Data in the table below reflects analysis of risk ratings at points in time prior to June 30, 2014; and the risk ratings of the dealers were not re-underwritten for purposes of compiling data in that table. We cannot assure you that the dealers owing receivables held in the trust in the future will demonstrate the risk metrics in the percentages referred to below.
| Dealer Risk Rating Distribution in the Trust Portfolio | |
|
Dealer Risk Rating Group |
As of June 30, 2014 |
| A(1) | 15.0% |
| B(2) | 84.0% |
| C(3) |
0.0%(4) |
| Total |
100.00% |
(1) Dealers in this group demonstrate strong risk metrics.
(2) Dealers in this group demonstrate favorable to marginal risk metrics.
(3) Dealers in this group demonstrate poor to uncollectible risk metrics.
(4) Greater than 0%, but less than 0.5%.
Certain Dealers and Manufacturers
As of June 30, 2014, no one dealer accounted for more than 1.3% of the aggregate principal balance of the receivables in the trust portfolio. As of June 30, 2014, no one manufacturer or distributor was obligated under repurchase agreements relating to receivables aggregating more than 8.0% of the aggregate principal balance of the receivables in the trust portfolio. Such repurchase agreements are used as collateral disposal mechanisms in which risk is spread across dealers. As of June 30, 2014, GE is a manufacturer obligated under repurchase agreements relating to receivables collectively aggregating approximately 1.2% of the aggregate principal balance of the receivables in the trust portfolio. No prediction can be made as to what percentage of the receivables in the future may be obligations of a single dealer or be related to a single manufacturer or distributor under its repurchase agreements.
Delinquency and Loss Experience
The following tables set forth the aggregate delinquency and loss experience for the trust portfolio. We cannot assure you that the future delinquency and loss experience for any receivables held by the trust will be similar to the historical experience set forth below. The historical experience set forth below includes the effect of the financial obligations of manufacturers and distributors in respect of repossessed products. If manufacturers or distributors do not perform those obligations in the future, the loss experience of the receivables would be adversely affected
Delinquency Experience for the Trust Portfolio As of June 30, 2014
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| Days Outstanding | Amount (Dollars in Millions) | Percentage of Total Receivables Outstanding | ||||||
| 30-59 | $ | 7.0 | 0.1 | % | ||||
| 60-89 | $ | 2.5 | 0.0 | %(1) | ||||
| 90-119 | $ | 0.7 | 0.0 | %(1) | ||||
| 120-149 | $ | 0.8 | 0.0 | %(1) | ||||
| 150-179 | $ | 0.6 | 0.0 | %(1) | ||||
| >179 | $ | 1.7 | 0.0 | %(1) | ||||
| Total | $ | 13.3 | 0.2 | % | ||||
(1) Greater than 0%, but less than 0.5%.
For purposes of the delinquency tables set forth above:
| • | in the case of any receivable, if interest, fees, or scheduled liquidation late charges on any receivable are more than 29 days past due, then that receivable will be considered to be delinquent in an amount equal to the entire invoice amount of the invoice that included such past due amount; |
| • | in the case of a receivable arising under a “pay-as-sold program”, if the dealer has sold a particular item of inventory but did not remit payment to the applicable originator for more than 30 days after the originator became aware of the sale, failed to make a curtailment payment for more than 30 days after the related due date for such payment or failed to pay the balance of the receivable when such balance was due-in-full for more than 30 days after the related maturity date, then that receivable will be considered to be delinquent in an amount equal to the entire invoice amount of the invoice that included such unpaid payment; |
| • | in the case of a receivable arising under a “scheduled payment plan”, if the dealer has failed to make a scheduled payment for more than 30 days, then that receivable will be considered to be delinquent in an amount equal to the entire invoice amount of the invoice that included such unpaid scheduled payment; |
| • | in the case of asset based lending receivables, if the amount of the receivable exceeds a specified percentage of the collateral supporting the receivable and such excess is not consented to by the related originator, then that receivable is considered to be delinquent in an amount equal to such excess; and |
| • | the “> 179” category does not reflect receivables charged-off at 180 days delinquent. |
Loss Experience for the Designated Trust Portfolio
| Six Months Ended June 30, 2014 | ||||
| Average Receivables Balance | $ | 7,737.1 | ||
| Gross Charge-Offs | $ | 4.6 | ||
| Recoveries(1) | $ | 3.0 | ||
| Gross Charge-Offs Less Recoveries | $ | 1.6 | ||
| Gross Charge-Offs Less Recoveries as a percentage of Average Total Receivables Outstanding (annualized) | 0.0 | %(2) | ||
| Number of Accounts that Experienced a Net Loss | 147 | |||
| Gross Charge-Offs Less Recoveries divided by Number of Accounts that Experienced a Net Loss | $ | 0.01 | ||
(1) “Recoveries” mean amounts subsequently collected with respect to previously charged-off amounts.
(2) Greater than 0%, but less than 0.5%.
For purposes of the preceding table: “Average Receivables Balance” is calculated as an average of the month-end principal balances of the applicable receivables for the six months in such period and the month preceding such period.
Aging Experience
The following table provides the age distribution of receivables in the trust portfolio by receivables balance and as a percentage of such receivables in the trust portfolio. For purposes of the following table, aging for floorplan receivables generally commences on the date of the applicable invoice provided by the applicable manufacturer to the applicable originator and ends on the date that the receivable has been paid in full, except in the case of TF, aging for floorplan receivables generally commences on receipt of the related manufacturer’s invoice for new inventory in connection with an advance request. With respect to receivables from the accounts receivables product line or the asset based lending product line, all of such receivables are included in the “1-12” month category because determining which of those receivables are in the “over 12” month category would involve unreasonable effort or expense and, in any event, we believe that most of such receivables fall into the “1-12” month category. We cannot assure you that the aging experience for any receivables held by the trust in the future will be similar to the age distributions set forth below.
Age Distribution of Receivables in the Trust Portfolio
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| Month | Receivables Balance | Percentage of Receivables Balance | ||||||
| 1-12 | $ | 7,197.8 | 91 | % | ||||
| Over 12 | $ | 755.4 | 9 | % | ||||
| Total | $ | 7,953.2 | 100.0 | % | ||||
Payment Rates
The following table sets forth the highest and lowest Historical Payment Rates and the average of the Historical Payment Rates for the period shown.
“Historical Payment Rate” means, for any month, a fraction (expressed as a percentage) (a) the numerator of which is the principal collections on the receivables in the trust portfolio during such month and (b) the denominator of which is the aggregate balance of the principal receivables in the trust portfolio at the beginning of such month.
We cannot assure you that the rate of collections on the receivables held by the trust will be similar to the historical experience set forth below. Without limiting the foregoing, the rate of collections on the receivables held by the trust may be affected by the addition or removal of accounts with respect to the trust from time to time.
Historical Payment Rates for the Trust Portfolio
| Six Months Ended June 30, 2014 | ||||||
| Highest Month | 35.1 | % | ||||
| Lowest Month | 25.3 | % | ||||
| Average of the Months in the Period | 30.9 | % | ||||
Certain Payment Plan Information
The floorplan businesses of the originators provide two basic payment terms to dealers, manufacturers or distributors: pay-as-sold or scheduled payment plan. As of June 30, 2014, the floorplan receivables in the trust portfolio, by the principal amount of receivables outstanding, consisted of approximately 77.9% pay-as-sold receivables and 22.1% scheduled payment plan receivables. In addition, a limited number of specialized payment programs may offer a combination of pay-as-sold terms and scheduled payment plan terms such that principal payment terms may initially be funded under pay-as-sold terms and then convert to scheduled payment plan terms upon the occurrence of certain specified events.