CAPITAL ONE PRIME AUTO RECEIVABLES TRUST 2006-2 ASSET BACKED NOTES
Exhibit 1.2
CAPITAL ONE PRIME AUTO RECEIVABLES TRUST 2006-2
ASSET BACKED NOTES
TERMS AGREEMENT
Dated: October 4, 2006
| To: | CAPITAL ONE AUTO FINANCE, INC. |
| CAPITAL ONE AUTO RECEIVABLES, LLC |
| Re: | Underwriting Agreement, dated September 29, 2006 |
| 1. | Terms of the Notes |
| Class | Initial Note Balance | Interest Rate | Final Scheduled Payment Date | |||||
| Class A-1 Notes | $ | 265,000,000 | 5.33 | % | October 2007 Payment Date | |||
| Class A-2 Notes | $ | 349,000,000 | 5.17 | % | May 2009 Payment Date | |||
| Class A-3 Notes | $ | 308,000,000 | 4.98 | % | September 2010 Payment Date | |||
| Class A-4 Notes | $ | 293,101,000 | 4.94 | % | July 2012 Payment Date | |||
| Class B Notes | $ | 34,899,000 | 5.05 | % | June 2013 Payment Date | |||
| 2. | Underwriters |
The Underwriters named below are the “Underwriters” for the purpose of this Agreement and for the purposes of the above-referenced Underwriting Agreement as such Underwriting Agreement is incorporated herein and made a part hereof.
Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
Banc of America Securities LLC
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Greenwich Capital Markets, Inc.
RBC Capital Markets Corporation
| 3. | Ratings |
| Class | Rating Agency | |||||
| Standard & Poor’s | Moody’s | Fitch | ||||
| A-1 | A-1+ | Prime-1 | F1+ | |||
| A-2 | AAA | Aaa | AAA | |||
| A-3 | AAA | Aaa | AAA | |||
| A-4 | AAA | Aaa | AAA | |||
| B | A | A3 | A | |||
| 4. | Underwriting Liability |
| Underwriting Liability | Class A-1 | Class A-2 | Class A-3 | Class A-4 | Class B | ||||||||||
| Goldman, Sachs & Co. | $ | 38,000,000 | $ | 50,000,000 | $ | 44,000,000 | $ | 42,051,000 | $ | 17,449,000 | |||||
| Morgan Stanley & Co. Incorporated | $ | 38,000,000 | $ | 50,000,000 | $ | 44,000,000 | $ | 42,050,000 | $ | 17,450,000 | |||||
| Banc of America Securities LLC | $ | 37,800,000 | $ | 49,800,000 | $ | 44,000,000 | $ | 41,800,000 | |||||||
| Citigroup Global Markets Inc. | $ | 37,800,000 | $ | 49,800,000 | $ | 44,000,000 | $ | 41,800,000 | |||||||
| Credit Suisse Securities (USA) LLC | $ | 37,800,000 | $ | 49,800,000 | $ | 44,000,000 | $ | 41,800,000 | |||||||
| Greenwich Capital Markets, Inc. | $ | 37,800,000 | $ | 49,800,000 | $ | 44,000,000 | $ | 41,800,000 | |||||||
| RBC Capital Markets Corporation | $ | 37,800,000 | $ | 49,800,000 | $ | 44,000,000 | $ | 41,800,000 | |||||||
| Total Amount | $ | 265,000,000 | $ | 349,000,000 | $ | 308,000,000 | $ | 293,101,000 | $ | 34,899,000 | |||||
| 5. | Purchase Price, Discounts and Concessions |
| Class A-1 | Class A-2 | Class A-3 | Class A-4 | Class B | |||||||||||
| Gross Purchase Price | 100.00000 | % | 99.99420 | % | 99.99801 | % | 99.98305 | % | 99.98202 | % | |||||
| Underwriting Discount | 0.09000 | % | 0.13000 | % | 0.16500 | % | 0.21000 | % | 0.30000 | % | |||||
| Net Purchase Price | 99.9100 | % | 99.86420 | % | 99.83301 | % | 99.77305 | % | 99.68202 | % | |||||
| Maximum Dealer Selling Concessions | 0.054 | % | 0.078 | % | 0.099 | % | 0.126 | % | 0.180 | % | |||||
| Maximum Dealer Reallowance Discounts | 0.0270 | % | 0.0390 | % | 0.0495 | % | 0.0630 | % | 0.0900 | % |
| 6. | Time of Sale |
12:25 p.m. (Eastern Time) (U.S.) on October 4, 2006 (the time the first Contract of Sale was entered into as designated by the Representatives.)
| 7. | Closing Date |
Pursuant to Rule 15c6-1(d) under the Securities Exchange Act of 1934, as amended, the Underwriters, the Seller and COAF hereby agree that the Closing Date shall be October 12, 2006, 10:00 a.m., New York City time.
The Underwriters agree, severally and not jointly, to purchase the Notes subject to the terms and provisions of this Terms Agreement and the above-referenced Underwriting Agreement which is incorporated herein in its entirety and made a part hereof.
| GOLDMAN, SACHS & CO. | ||
| By | /s/ Buny Borha | |
| Name: | Buny Borha | |
| Title: | Managing Director | |
| MORGAN STANLEY & CO. INCORPORATED | ||
| By | /s/ Jack Kattan | |
| Name: | Jack Kattan | |
| Title: | Managing Director | |
For themselves and as representatives of the other several Underwriters named in this Terms Agreement.
Accepted and Agreed:
| CAPITAL ONE AUTO RECEIVABLES, LLC, as Seller | ||
| By | /s/ Jerry Hamstead | |
| Name: | Jerry Hamstead | |
| Title: | Assistant Vice President | |
| CAPITAL ONE AUTO FINANCE, INC. | ||
| By | /s/ Albert Ciafre | |
| Name: | Albert Ciafre | |
| Title: | Assistant Vice President | |
