AmeriCredit Strikes Deal for $2 Billion Forward Purchase Commitment
FORT WORTH, Texas. — In a move AmeriCredit's president and chief executive officer called positive, his company recently announced that it has entered into a one-year, $2 billion forward purchase commitment agreement with Deutsche Bank AG, Cayman Islands Branch.
Under this agreement and subject to certain terms, Deutsche will purchase triple-A-rated, asset-backed securities in registered public offerings on the company's subprime AmeriCredit Automobile Receivables Trust securitization platform, officials indicated.
In connection with this agreement, the company has issued to an affiliate of Deutsche warrants to purchase 7.5 million shares of the company's common stock. The warrants may be exercised on or before April 15, 2015, at $12.01 per share, officials said.
"This agreement is a positive step in our pursuit of securitization opportunities in this challenging capital markets environment," said Dan Berce, AmeriCredit's president and chief executive officer.
"AmeriCredit uses net proceeds from securitization transactions to provide long-term financing of its receivables," he concluded.