Terms Agreement for Capital One Prime Auto Receivables Trust 2007-1 Asset Backed Notes, Dated June 14, 2007
This agreement, dated June 14, 2007, is between Capital One Auto Finance, Inc., Capital One Auto Receivables, LLC, and a group of underwriters led by Deutsche Bank Securities Inc. and Merrill Lynch. It sets the terms for the sale and underwriting of asset-backed notes issued by the Capital One Prime Auto Receivables Trust 2007-1. 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 June 28, 2007.
Exhibit 1.2
CAPITAL ONE PRIME AUTO RECEIVABLES TRUST 2007-1
ASSET BACKED NOTES
TERMS AGREEMENT
Dated: June 14, 2007
| To: | CAPITAL ONE AUTO FINANCE, INC. |
CAPITAL ONE AUTO RECEIVABLES, LLC
| Re: | Underwriting Agreement, dated June 12, 2007 |
| 1. | Terms of the Notes |
| Class | Initial Note Balance | Interest Rate | Final Scheduled Payment Date | ||||
| A-1 | $ | 279,000,000 | 5.3444% | June 2008 Payment Date | |||
| A-2 | $ | 325,000,000 | 5.43% | February 2010 Payment Date | |||
| A-3 | $ | 308,000,000 | 5.47% | June 2011 Payment Date | |||
| A-4 | $ | 283,090,000 | LIBOR + 0.02% | December 2012 Payment Date | |||
| B | $ | 54,910,000 | 5.76% | December 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.
| Deutsche Bank Securities Inc. |
| Merrill Lynch, Pierce, Fenner & Smith Incorporated |
| Barclays Capital Inc. |
| J.P. Morgan Securities Inc. |
| Lehman Brothers Inc. |
| Morgan Stanley & Co. Incorporated |
| Greenwich Capital Markets, Inc. |
| 3. | Ratings |
| Class | 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 | A2 | A | |||
| 4. | Underwriting Liability |
| Underwriting Liability | Class A-1 | Class A-2 | Class A-3 | Class A-4 | Class B | |||||||||||||||
| Deutsche Bank Securities Inc. | $ | 98,000,000 | $ | 114,000,000 | $ | 108,000,000 | $ | 99,081,500 | $ | 27,455,000 | ||||||||||
| Merrill Lynch, Pierce, Fenner & Smith Incorporated | $ | 98,000,000 | $ | 114,000,000 | $ | 108,000,000 | $ | 99,081,500 | $ | 27,455,000 | ||||||||||
| Barclays Capital Inc. | $ | 16,600,000 | $ | 19,400,000 | $ | 18,400,000 | $ | 16,985,400 | $ | — | ||||||||||
| J.P. Morgan Securities Inc. | $ | 16,600,000 | $ | 19,400,000 | $ | 18,400,000 | $ | 16,985,400 | $ | — | ||||||||||
| Lehman Brothers Inc. | $ | 16,600,000 | $ | 19,400,000 | $ | 18,400,000 | $ | 16,985,400 | $ | — | ||||||||||
| Morgan Stanley & Co. Incorporated | $ | 16,600,000 | $ | 19,400,000 | $ | 18,400,000 | $ | 16,985,400 | $ | — | ||||||||||
| Greenwich Capital Markets, Inc. | $ | 16,600,000 | $ | 19,400,000 | $ | 18,400,000 | $ | 16,985,400 | $ | — | ||||||||||
| Total Amount | $ | 279,000,000 | $ | 325,000,000 | $ | 308,000,000 | $ | 283,090,000 | $ | 54,910,000 | ||||||||||
| 5. Purchase Price, Discounts and Concessions |
| |||||||||||||||||||
| Class A-1 | Class A-2 | Class A-3 | Class A-4 | Class B | ||||||||||||||||
| Gross Purchase Price | 100.000000 | % | 99.998900 | % | 99.991360 | % | 100.000000 | % | 99.991370 | % | ||||||||||
| Underwriting Discount | 0.090000 | % | 0.130000 | % | 0.165000 | % | 0.200000 | % | 0.300000 | % | ||||||||||
| Net Purchase Price | 99.910000 | % | 99.868900 | % | 99.826360 | % | 99.800000 | % | 99.691370 | % | ||||||||||
| Maximum Dealer Selling Concessions | 0.054000 | % | 0.078000 | % | 0.099000 | % | 0.120000 | % | 0.180000 | % | ||||||||||
| Maximum Dealer Reallowance Discounts | 0.027000 | % | 0.039000 | % | 0.050000 | % | 0.060000 | % | 0.090000 | % | ||||||||||
| 6. | Time of Sale |
11:45 a.m. (Eastern Time) (U.S.) on June 14, 2007 (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 June 28, 2007, 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.
| DEUTSCHE BANK SECURITIES INC. | ||
| By | /s/ Rick Koppenhaver | |
| Name: | Rick Koppenhaver | |
| Title: | Director | |
| By | /s/ Jay Steiner | |
| Name: | Jay Steiner | |
| Title: | Managing Director | |
| MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED | ||
| By | /s/ Lisa Waller | |
| Name: | Lisa Waller | |
| Title: | Authorized Signatory | |
For themselves and as representatives of the other several Underwriters named in this Terms Agreement.
| S-1 | Terms Agreement |
Accepted and Agreed:
| CAPITAL ONE AUTO RECEIVABLES, LLC, as Seller | ||
| By | /s/ Richard Johns | |
| Name: | Richard Johns | |
| Title: | Assistant Vice President | |
| CAPITAL ONE AUTO FINANCE, INC. | ||
| By | /s/ Jerry Hamstead | |
| Name: | Jerry Hamstead | |
| Title: | Assistant Vice President | |
| S-2 | Terms Agreement |
