An auto loan-backed deal that was increased in size to $1.125 billion has launched, according to a person familiar with the deal.

The bond, USAOT 09-1, issued by USAA, a financial-services company, isn't eligible for funding under the Federal Reserve's Term Asset-Backed Securities Loan Facility, or TALF.

Intially, the deal was $946 million in size, but demand was "so strong" that the size was increased, according to one investor.

The largest triple-A rated tranche worth $587 million has launched at 165 basis points over swaps.

Price guidance on this tranche was in the 300 basis points over swaps area Tuesday.

The deal is expected to price later Wednesday.

Joint leads are Banc of America Securities and JP Morgan.

-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; anusha.shrivastava@dowjones.com