AmeriCredit Prices $600 Million Senior Subordinate Asset-Backed Securitization
FORT WORTH, Texas — AmeriCredit announced late last week the pricing of a $600 million offering of automobile receivables-backed securities. This securitization is through lead managers Deutsche Bank Securities, J.P. Morgan and Wells Fargo Securities.
Executives mentioned that co-managers are Credit Suisse, RBS and UBS Investment Bank.
AmeriCredit explained that it plans to use net proceeds from securitization transactions to provide long-term financing of its receivables.
Officials said the securities will be issued through an owner trust — AmeriCredit Automobile Receivables Trust 2010-2. They will be issued in seven classes of notes:
Note Class | Amount | Average Life | Price | Interest Rate |
A-1 | $152.1 million | 0.21 years | 100.00000 | 0.50068 percent |
A-2 | $177.7 million | 0.99 years | 99.99523 | 1.22 percent |
A-3 | $76.6 million | 2.03 years | 99.98045 | 1.71 percent |
B | $52.8 million | 2.66 years | 99.99645 | 2.73 percent |
C | $65.6 million | 3.33 years | 99.96924 | 4.52 percent |
D | $60.8 million | 3.87 years | 99.99259 | 6.24 percent |
E | $14.4 million | 3.88 years | 99.96813 | 8.66 percent |
Executives pointed out that the weighted average coupon on the notes to be paid by AmeriCredit is 3.8 percent.
Continuing on, Standard & Poor's and Moody's Investors Service rated the Note Classes as follows:
Note Class | Standard & Poor's | Moody's |
A-1 | A-1+ | Prime-1 |
A-2 | AAA | Aaa |
A-3 | AAA | Aaa |
B | AA | Aa1 |
C | A | A1 |
D | BBB | Baa3 |
E | BB | Ba3 |
The initial credit enhancement of the 2010-2 transaction will be 8.25 percent. This will consist of a 2 percent cash deposit and 6.25 percent overcollateralization.
AmeriCredit said the total required enhancement will build to 15.25 percent of the then-outstanding receivable pool balance. This includes the initial 2 percent cash deposit.