SALT LAKE CITY — Though investors have been extremely hesitant of late when it comes to the subprime auto asset-backed securities market, Prestige Financial Services apparently bucked this trend by tapping the credit markets for such a securitization earlier this month.

Prestige Financial believes this instance is just the second transaction of its kind to succeed in the market since May 2008.

"This is an outstanding ABS execution by an outstanding issuer in what remains a challenging economic environment," said Andrew Yuder, managing director at BB&T Capital Markets.

"Investor demand exceeded supply on both note classes, demonstrating the strong market receptivity and liquidity of Prestige's receivables," Yuder continued. "This transaction reasserted the company's presence at the forefront of the subprime auto ABS sector."

According to company executives, Prestige Financial had $151.1 million of loans that were securitized when transactions closed Dec. 10. When the company completed its seventh rated term securitization, it issued $140.5 million in notes.

Underwritten by BB&T Capital Markets, Prestige Financial indicated that the notes were purchased by qualified institutional buyers in a private offering pursuant to Rule 144A of the Securities Act.

The company went on to detail that the two note classes carried Standard & Poor's ratings of A and BBB based on several factors, including its proven track record as a loan originator and servicer.

Prestige Financial — an affiliate of The Larry H. Miller Group — touted several elements that resulted in the company enjoying such a recent performance. Company executives praised their stable of more than 250 credit professionals and support staff to service a wide range of borrower types at dealerships in 13 states. They also mentioned that Quadrant Financial Group advised them on this most recent securitization.

"We appreciate the enthusiastic support of both new and repeat investors that ultimately led us to upsize the note offering," Prestige Financial chief operating officer Bryant Henrie pointed out.

"This important transaction is a testament to the skill and dedication of our employees and will allow us to continue to serve our customers at a very high level," Henrie concluded.