Terms Agreement for Capital One Prime Auto Receivables Trust 2006-2 Asset Backed Notes, Dated October 4, 2006
This agreement is between Capital One Auto Finance, Inc., Capital One Auto Receivables, LLC, and a group of underwriters including Goldman Sachs, Morgan Stanley, and others. It sets the terms for the sale and purchase of asset-backed notes issued by the Capital One Prime Auto Receivables Trust 2006-2. The agreement details the classes of notes, interest rates, payment schedules, purchase prices, underwriting discounts, and the responsibilities of each underwriter. The closing date for the transaction is October 12, 2006.
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 | |
