FORT WORTH, Texas — Along with announcing the pricing of an offering of automobile receivables-backed securities, General Motors Financial reported growth in both third quarter net income and originations.

Earlier this week, executives from the company formerly known as AmeriCredit revealed that third-quarter net income totaled $51 million. They pointed out net income for the quarter that ended Sept 30 was adversely impacted by $43 million ($30 million after tax) of expenses directly related to the acquisition by GM.

The company reported net income of $26 million for the same period a year earlier.

GM Financial indicated its third-quarter originations totaled $959 million. That figure marked a rise from the second-quarter total, which was $906 million, as well as the year-ago amount, which was $229 million

Officials added that finance receivables totaled $8.7 billion as of Sept. 30, compared with $10 billion at the same date a year earlier.

The company determined annualized net charge-offs settled at 5.4 percent of average finance receivables for the third quarter. In the year-ago period, the figure was 8.4 percent.

GM Financial reported drops in delinquencies, too.

Its finance receivables 31-to-60 days delinquent were 6.2 percent of its portfolio at end of the third quarter. At the same point a year ago, the company said it was 7.6 percent.

Management also noted accounts more than 60 days delinquent composed 2.5 percent of its portfolio as of Sept. 30. That's compared with 3.8 percent a year ago.

GM Financial's allowance for loan losses as a percentage of finance receivables finished at 6.1 percent at the end of the third quarter. The company mentioned that its second-quarter mark was 6.6 percent and the year-ago mark was 8.2 percent.

Wrapping up its third-quarter financial report, the company indicated it had total available liquidity of $856 million. Executives explained the amount consisted of $538 million of unrestricted cash and approximately $318 million of borrowing capacity on unpledged eligible receivables.

Latest Asset-Backed Securitization

Soon after revealing its latest financial report, GM Financial announced the pricing of a $700 million offering of automobile receivables-backed securities through lead managers Credit Suisse, Deustche Bank Securities, J.P. Morgan and RBS. The company said co-managers are UBS Investment Bank and Wells Fargo Securities.

GM Financial indicated that it plans uses net proceeds from securitization transactions for long-term financing of its receivables.

Executives explained the securities will be issued via an owner trust, AmeriCredit Automobile Receivables Trust 2010-4, in seven classes of notes:

 Note Class  Amount   Average Life   Price   Interest Rate 
 A-1  $182,800,000  0.20 years  100.00000  0.32522 percent
 A-2  $223,000,000  0.99 years  99.99404  0.96 percent
 A-3  $90,327,000  2.12 years  99.98412  1.27 percent
 B  $53,846,000  2.76 years  99.98743  1.99 percent
 C  $66,843,000  3.38 years  99.97114  2.76 percent
 D  $65,730,000  3.87 years  99.99986  4.20 percent
 E  $17,454,000  3.89 years  99.97671  6.40 percent
   $700,000,000      

The company stated the weighted average coupon on the notes to be paid by GM Financial is 2.5 percent.

Executives added the Note classes are rated by Standard & Poor's and Moody's Investors Service. The ratings by Note Class are:

 Note Class    Standard & Poor's  Moody's
 A-1  A-1+ (sf)  Prime-1(sf)
 A-2  AAA (sf)  Aaa (sf)
 A-3  AAA (sf)  Aaa (sf)
 B  AA (sf)  Aa1 (sf)
 C  A+ (sf)  Aa3 (sf)
 D  BBB (sf)  Baa2 (sf)
 E  BB (sf)  Ba2 (sf)

GM Financial highlighted the 2010-4 transaction will have initial credit enhancement of 7.75 percent, consisting of a 2.00 percent cash deposit and 5.75 percent overcollateralization. Officials went on to note that 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 said copies of the prospectus relating to the public offering of receivables-backed securities may be obtained from the lead managers and co-managers. GM Financial also stated the Class E notes have been privately offered via a private placement memorandum.

Company officials emphasized their announcement "shall not constitute an offer to sell or the solicitation of an offer to buy the securities described in this announcement, 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."