Donna M. Mitchell

The capital structure includes first cash flow and last cash flow notes among the senior classes, and expected coupons include 5.64% on the A1A, A1B, A1FCF, A1LCF and A1 notes.

There is an optional redemption feature, which allows certificate holders to redeem the notes on any day on or after the fifth business day before the monthly payment date in July 2028.

Hansen will oversee all the firm's finance and operations.

Second homes account for 10.1% of the underlying collateral pool, the highest ratio seen in pools all year.

Among the deal's positive credit characteristics was the pool's diversification by customer base and geography. The collateral pool includes more than 1.1 million passings across 10 states, with Georgia accounting for the largest percentage (31%). Texas and Kentucky follow, both with ratios of 16%.

A delinquency test requires that excess cash pay down the notes sequentially if the aggregate delinquent loans represent more than 5.0% of the portfolio balance's average loan balance.

The deal includes a three-year revolving period when collections can be used to buy new collateral if it meets eligibility and reinvestment criteria.

The notes will repay investors using a hybrid structure, according to the rating agencies. The senior notes will repay investors pro rata, and the mezzanine and subordinate notes will repay sequentially, KBRA and Fitch said.

This series of CarMax Select Receivables notes is offering 8.42% in excess spread, a reduction from 9.85% on the CMXS 2026-A notes, according to S&P. That's just one of several structural changes, as total initial hard credit enhancement increased across tranches.