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CHADDS FORD, Pa. — Flagship Credit Acceptance, a national
indirect automobile finance company, announced the issuance of its first
asset-backed securitization.

The total amount was $109 million in a transaction that was
completed Thursday. 

Officials highlighted the securitization will increase
Flagship's liquidity position and will allow the company to further grow its
auto finance business. 

As part of the securitization, notes were issued in four
tranches and were assigned ratings by Standard & Poor's Ratings Services
and Kroll Bond Rating Agency.

Michael Ritter, founder and chief executive officer of
Flagship, declared, "We are delighted about this transaction.  Access to the capital markets, especially in
today's economy, is critically important and necessary to achieving long-term
growth and success in the auto financing industry. 

"This securitization is a major step in Flagship's evolution
as a nationally recognizable lender in the below-prime financing sector, and we
anticipate being a regular issuer of asset-backed securities in the future,"
Ritter continued.

Flagship indicated it currently employs more than 100
professionals who focus on a customer service driven lending model. The company
aims to provide financing to consumers with limited access to traditional
financing sources through its broad network of more than 2,000 dealer relationships,
predominantly franchised, across 31 states. 

Back in February, Flagship announced its controlling
shareholder increased its capital investment to support the company's growing
auto finance platform.

Flagship also revealed it entered into an agreement with
Wells Fargo Bank to renew and increase its commercial credit facility to $175
million.

Officials explained the credit facility represents an
additional committed source of liquidity to fund the company's auto finance
consumer lending activities. They added the facility also will be utilized to
support Flagship's strategic growth plans.

"By continuing to expand Flagship's capital base, we are
demonstrating our ongoing commitment to increasing the company's consumer
lending activities," Ritter stated.

"As we continue to grow, we will build upon our solid
underwriting and servicing platforms. We are pleased to have the support of our
shareholders and debt providers as we look to assist even more dealers in
providing auto finance solutions to their below-prime car buyers," Ritter
concluded.