Prestige Financial Securitizes $222 Million Loan Portfolio
SALT LAKE CITY — Prestige Financial Services announced it has completed its eighth rated term securitization, issuing about $221.6 in noted backed by about $225.6 in subprime auto installment receivables.
Underwritten by J.P. Morgan Securities, the notes were purchased by qualified institutional buyers and accredited investors in a private offering pursuant to Rule 144A of the Securities Act. The transaction closed on March 28.
The six note classes carried ratings ranging from A-1+/R-1h through BBB/BBB from both Standard & Poor's and DBRS, respectively, based on several factors including Prestige's proven track record as a loan originator and servicer. The weighted average note yield was 2.74 percent.
"This transaction marks Prestige's first natural triple-A rated ABS issuance," said John Cho, managing director at J.P. Morgan Securities. "It also enjoyed the company's broadest investor base participation to date. We see both as confirmations of the market's continued confidence in the Prestige name."
Prestige was founded in 1994 as an affiliate of the Larry H. Miller Group, which includes the NBA's Utah Jazz and the country's 10th largest dealership network. Prestige manages a portfolio of more than $400 million and does business with more than 500 dealerships in 21 states.
"A strong showing by both new and repeat investors allowed us to achieve our best-ever pricing on a term securitization," said Bryant Henrie, Prestige's chief operating officer. "Our marching orders are to pursue controlled growth while seeking and servicing the type of customer who has proven to be the most successful for us. This transaction will facilitate that growth."
All notes included in the securitization have been sold.