AmeriCredit Announces Securitization
FORT WORTH, Texas — Despite a tough securitization market, AmeriCredit announced this morning that it priced a $500 million offering of primarily subprime auto receivables-backed securities under its AmeriCredit Automobile Receivables Trust platform.
The pricing took place on Monday, officials noted, with the announcement coming out today.
The lead managers on the transaction include Deutsche Bank Securities, Wachovia Securities and Barclays Capital.
AmeriCredit uses net proceeds from securitization transactions to provide long-term financing of its receivables.
A-1
Amount: $100,000,000
Average Life: 0.21 years
Price 100.000000
Interest Rate: LIBOR + 1 percent
A-2
Amount: $202,000,000
Average Life: One year
Price: 100.00000
Interest Rate: LIBOR + 4 percent
A-3
Amount: $74,046,000
Average Life: 2.48 years
Price: 100.00000
Interest Rate: LIBOR +5 percent
B
Amount: $51,514,000
Average Life: 2.44 years
Price: Retained
C
Amount: $72,440,000
Average Life: 1.34 years
Price: Retained
According to the company, the Class A notes will be placed with Deutsche Bank pursuant to AmeriCredit's forward purchase agreement with Deutsche Bank AG, Cayman Islands Branch.
The weighted average coupon on the Class A notes is 7.3 percent.
The Class B and Class C notes will be retained by AmeriCredit and pledged as collateral to secure borrowings under AmeriCredit's funding facility with Wachovia Bank, North America.
The weighted average coupon of the notes being pledged under this funding facility is 11.2 percent.
The 2008-1 transaction will have initial credit enhancement of 24.35 percent of the original receivable pool balance, building to the total required enhancement level of 34.10 percent of the then-outstanding receivable pool balance, officials indicated.
The initial 24.35 percent enhancement will consist of 2 percent cash deposit and 22.35 percent over-collateralization.
The Note Classes are rated by Standard & Poor's and Moody's Investors Service as:
A-1
Standard & Poor's: A-1+
Moody's: Prime-1
A-2
S&P: AAA
Moody's: Aaa
A-3
S&P: AAA
Moody's: Aaa
B
S&P: AA
Moody's: Aa2
C
S&P: A
Moody's: A3