GM Financial Taps DataScan Technologies as Commercial Lending Solution Provider
FORT WORTH, Texas — Along with detailing its latest asset-backed securitization, General Motors revealed which provider will handle its new commercial lending services business.
Officials tapped DataScan Technologies as their systems provider for the commercial lending services business GM Financial is set to launch in April.
The company said this division will offer floor plan financing, capital, real estate and construction loans, floor plan insurance and cash management programs to GM dealers in the United States and Canada.
GM Financial also selected DataScan Field Services to conduct its floor plan inspections.
Officials believe both the lending systems and inspection services will provide GM Financial with a complete dealer floor plan solution utilizing DataScan's Wholesale Management System, Dealer Access System, Risk Management System and DataScan Field Service's extensive nationwide coverage.
"As we looked to build a best-in-class commercial lending platform, aligning ourselves with industry leaders was a must," said Brian Fallon, GM Financial's senior vice president of commercial lending services.
"When it came to selecting a provider for dealer loan systems and inspection services, DataScan had the history and experience necessary to help us develop a comprehensive program that meets the needs of our GM dealer partners," Fallon continued.
DataScan vice president and general manager Brent Sergot added, "We look forward to the new business relationship with GM Financial and are pleased to have the opportunity to provide them with our expertise as they launch their dealer commercial business.
"DataScan's support systems and services will streamline GM Financial's lending and risk mitigation through an easy-to-use online interface, as well as accommodate our clients' future growth plans," Sergot went on to say.
GM Financial intends to market its commercial lending services suite of products at the National Auto Dealers Association Convention and Expo this weekend in Las Vegas. To learn more, dealers can visit GM Financial in the General Motors' booth (No. 2666) at NADA.
GM Financial Announces $1 Billion Senior Offering
In other company news, GM Financial also disclosed pricing of a $1.0 billion offering of auto receivables-backed securities through lead managers Barclays Capital, Deutsche Bank Securities and J.P. Morgan.
Officials noted co-managers are Credit Suisse, Morgan Stanley, RBS and BofA Merrill Lynch.
GM Financial reiterated that it uses net proceeds from securitization transactions for long-term financing of its receivables.
The securities will be issued via an owner trust, AmeriCredit Automobile Receivables Trust 2012-1, in seven classes of notes:
Note Class | Amount | Average Life | Price | Interest Rate |
A-1 | $204,900,000 | 0.23 years | 100.00000 | 0.44685% |
A-2 | $366,700,000 | 1.05 years | 99.99452 | 0.91% |
A-3 | $137,159,000 | 2.26 years | 99.98925 | 1.23% |
B | $76,923,000 | 2.91 years | 99.98383 | 1.73% |
C | $95,492,000 | 3.50 years | 99.99635 | 2.67% |
D | $93,900,000 | 3.98 years | 99.98812 | 4.72% |
E | $24,926,000 | 4.00 years | 99.96879 | 5.94% |
$1,000,000,000 |
Officials pointed out the weighted average coupon on the notes to be paid by GM Financial is 2.5 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) |
GM Financial also mentioned fhe 2012-1 transaction will have initial credit enhancement of 7.75 percent, consisting of a 2.00 percent cash deposit and 5.75 percent overcollateralization. Total required enhancement will build to 14.75 percent of the then-outstanding receivable pool balance, which includes the initial 2.00 percent cash deposit.
The company indicated copies of the prospectus relating to the public offering of receivables-backed securities may be obtained from the lead managers and co-managers. Officials added, the Class E Notes have been privately offered via a private placement memorandum which may be obtained from the lead managers.
"This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described in this press release, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state," GM Financial explained.