AmeriCredit Announces First Securitization Pricing After Revealing GM Deal
FORT WORTH, Texas — AmeriCredit announced late last week that it has priced its first securitization deal after after saying it will soon become a subsidiary of General Motors.
AmeriCredit priced a $200 million offering of subprime automobile receivables-backed securities.
The lead manager on the transaction is RBS. Co-managers include Credit Suisse, Deutsche Bank Securities, J.P. Morgan and UBS Investment Bank.
Net proceeds from the transactions will be used to provide long-term financing of receivables, according to officials.
The securities will be issued via an owner trust called AmeriCredit Automobile Receivables Trust 2010-B, in three classes of notes:
Class: A-1
Amount: $36.8 million
Average Life: 0.18 years
Price: 100.00000
Interest Rate: 0.37690 percent
A-2
Amount: $69 million
Average Life: 0.99 years
Price: 99.99992
Interest Rate: 1.18 percent
A-3
Amount: $94.2 million
Average Life: 2.93 years
Price: 99.98317
Interest Rate: 2.49 percent
The weighted average coupon on the notes to be paid by AmeriCredit is 2.2 percent.
The note classes are weighted by Standard & Poor's Ratings Services and Moody's Investors Service.
The ratings are:
A-1
S&P: A-1+
Moody's: Prime-1
A-2
S&P: AAA
Moody's: Aa3
A-3
S&P: AAA
Moody's: Aa3
Assured Guaranty Corp. will provide bond insurance for the transaction. Initial credit enhancement will be 17 percent of the original receivable pool balance, building to the total required enhancement level of 24 percent of then outstanding receivable pool balance. The initial 17 percent enhancement will consist of 2 percent cash and 15 percent over-collateralization.
Copies of the prospectus can be obtained from the lead manager and co-managers.
AmeriCredit Joins AppOne Platform
In additional news, AmeriCredit is joining AppOne's origination platform. AppOne is a subsidiary of Wolters Kluwer Financial Services.
Officials noted that AmeriCredit will serve as the core of the new GM captive financing arm.
"The AppOne platform allows us to expand loan originations through a network of independent dealers while mitigating certain risks associated with auto lending," explained Kyle Birch, executive vice president of dealer services at AmeriCredit.
When announcing the GM deal, Dan Berce, AmeriCredit CEO and president, said the company will continue to focus on serving independent dealers as well as GM dealers. This partnership is designed to help the company better serve independents.
Lee Domingue, chief executive officer of indirect lending at Wolters Kluwer Financial Services, added, "We value our relationship with AmeriCredit. This is very positive news for our dealer customers, who are continually looking to build relationships with lending sources."