GM Financial Prices $900M Receivables-Backed Securities
FORT WORTH, Texas — General Motors Financial revealed Wednesday the pricing of a $900 million offering of automobile receivables-backed securities.
The weighted average coupon on the notes to be paid by GM Financial is 2.9 percent.
Moreover, the 2011-5 transaction will have initial credit enhancement of 7.75 percent, consisting of a 2.00 percent cash deposit and 5.75 percent overcollateralization.
The total required enhancement will build to 14.75 percent of the then-outstanding receivable pool balance, which includes the initial cash deposit.
The securities will be issued via an owner trust, AmeriCredit Automobile Receivables Trust 2011-5, in seven classes of notes, as follows:
Note Class | Amount | Average Life | Price | Interest Rate |
A-1 | $147,300,000 | 0.24 years | 100.00000 | 0.43326 percent |
A-2 | $344,600,000 | 1.10 years | 99.99560 | 1.19 percent |
A-3 | $145,983,000 | 2.35 years | 99.99772 | 1.55 percent |
B | $69,231,000 | 3.03 years | 99.98706 | 2.45 percent |
C | $85,943,000 | 3.60 years | 99.97238 | 3.44 percent |
D | $84,510,000 | 4.08 years | 99.99053 | 5.05 percent |
E | $22,433,000 | 4.10 years | 99.97851 | 6.76 percent |
The Note Classes are rated by Moody’s and Standard & Poor’s. The ratings by Note Class will be at least:
Note Class | Moody's | Standard & Poor's |
A-1 | P-1 (sf) | A-1+(sf) |
A-2 | Aaa(sf) | AAA(sf) |
A-3 | Aaa(sf) | AAA(sf) |
B | Aa2(sf) | AA(sf) |
C | A2(sf) | A(sf) |
D | Baa2(sf) | BBB(sf) |
E | Ba3(sf) | BB(sf) |
Officials also stressed that GM Financial uses net proceeds from securitization transactions for long-term financing of its receivables.
The aforementioned securities are offered through lead managers Deutsche Bank Securities, Morgan Stanley, RBS and UBS Investment Bank.
Co-managers are Credit Suisse, J.P. Morgan and Wells Fargo Securities, the company noted.